Sagar Cements to lay rail line for Rs 1.2 bn
In order to enable greater access to market, Sagar Cements decided to set up a private railway line at a cost of Rs 120 crore. The company has reportedly invested Rs 20 crore in the project so far.
The proposed 7-km line, which will connect the company's plant with the main railway line in Andhra Pradesh, will also reduce freight costs for the firm.
The company's plant is located near Matampally in Nalgonda district of Andhra Pradesh. Of the proposed investment of Rs 120 crore, Rs 98 crore is to come from debt and the remaining from internal accruals.
By 2014-15, the firm expects to complete the project and dispatches by rail may rise 20 per cent thereafter, reports indicate.
During 2012-13, Sagar Cements' dispatches were 15.50 lakh tonne. Of this 39,449 tonne were transported by rail.