Shiva Cement revises investment for Sundargarh cement expansion project's phase I to Rs 248 crore
The Project Co-ordination Committee (authorised by the board) of Shiva Cement Ltd has revised the investment for the Sundargarh cement expansion project's phase I to Rs 248 crore from Rs 163.5 crore. The capacity will now be increased from 0.13 mtpa to one mtpa, instead of up to 0.66 mtpa. It will be commissioned by March 2013. This information has been sourced from the company's announcement to the Bombay Stock Exchange (BSE) on 10th June 2011. In May 2011, the company received the Environmental Clearance for the capacity to be expanded up to 1.05 mtpa. Earlier, it was expected to be commissioned by April 2013. In April 2007, the company announced that it would expand the cement capacity of its existing plant at Kalunga and Telighana in Sundargarh district of Orissa in two phases. In phase-II the company will set up a split-location grinding unit at Jajapur in Orissa to increase the capacity from one to 2.6 mtpa. Board of Director (BoD) approval for the phase I has been received. In February 2009, the Government of Orissa gave the approval for both the phases. IDBI Bank Ltd will give Rs 80 crore to the company for its expansion project. BoD had approved the terms of loan and working capital issued by IDBI Bank Ltd. It has also approved the 25.69 acres of land sanctioned by the Industrial Infrastructure Development Corporation, Government of Orissa for the project. Rs 50 crore will be raised through an equity instrument and rest of Rs 35 crore will be provided by ACC Cement, possessing 14 per cent stake in the company.