GMDC clears Limestone linkage for cement plants
Gujarat Mineral Development Corporation (GMDC) has cleared the decks for limestone supply to some of the cement projects signed during the Vibrant Gujarat Summit. cGroup's Reliance Cementation, ACC and Adani are likely to sign long term supply agreements with GMDC. GMDC has allocated 2.5 million tonnes of limestone reserves for each at Kutch. Anil Ambani group led Reliance Cementation has signed memorandum of understanding (MoU) with the Gujarat government to set up 5 million tonnes per annum (mtpa) plants each at Kutch, Junagadh and Porbandar. The investment on the 5 mtpa cement plant would be close to Rs 2,500 crore. Reliance said that it could start work soon after the supply contract is signed and in that case, for setting up a 2.5 mtpa capacity, the initial investment would be around Rs 1,200 crore. GMDC is likely to pick up a 26 per cent equity stake in each of these projects. GMDC holds the exclusive rights to mine all key minerals including lignite, bauxite, limestone and manganese in the state. Adani Enterprises has signed MoU with the state government for setting up a Rs 1,850 crore cement manufacturing unit at Kutch during the 2009 Vibrant Gujarat Summit.