Orient Paper to set up cement plant in Karnataka
Orient Paper & Industries (OPIL) would be constructing a cement plant in Karnataka. The board of OPIL has cleared the company's proposal to set up Rs 1,473-crore 3 million tonne per annum (mtpa) greenfield cement manufacturing facility at Gulburga, Karnataka. The board has also approved plans to set up a 50 MW power plant entailing an additional investment of Rs 247 crore. The greenfield Karnataka unit could, in all likelihood, be part financed by a mix of internal accruals, debt and equity. Information trickling in suggests OPIL has already obtained the Karnataka government's approval for the proposed project as well as its go-ahead to buy some 1,500 acre plus for the same.
The move to add 3-mtpa cement capacity is in sync with OPIL's aim to become a 12-15 million tonne cement manufacturing firm by 2015-16. OPIL board has also approved the issue of convertible warrants aggregating Rs 1.20 crore to two promoter group companies - Central India Industries and Shekhavati Investments and Traders at Rs 57.25 a piece to raise Rs 70-crore long-term capital for the venture. An extraordinary general meeting has been convened on March 7 to seek shareholders' approval for the preferential issue. The company has recently expanded the capacity of its Andhra Pradesh and Maharashtra units, boosting its overall capacity from 3.4 mtpa to 5 mtpa.
A 50-MW captive power plant has also been installed at Devapur (Andhra Pradesh) plant.