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Jaiprakash Associates to set up cement plant in Assam

Published on Tue, Aug 04, 2009 at 16:37 | Source : press release

Updated at Tue, Aug 04, 2009 at 16:47

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Jaiprakash Associates to set up cement plant in Assam

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Jaiprakash Associates Ltd (JAL), the flagship company of the well diversified industrial conglomerate Jaypee Group having interests in the fields of Civil Engineering, Cement, Power, Real Estate & Hospitality, today signed an MOU for setting up a 2.0 million tonnes per annum capacity cement plant in joint venture with Assam Mineral Development Corporation Limited (AMDC).

Jaiprakash Associates Limited having turnover of over Rs 6500 Crore, is the leading Infrastructure Company of the country with construction of largest concrete dam - Sardar Sarovar, largest, rockfill dam- Tehri, largest underground power house - Naptha Jhakri to its credit. The Company has participated on EPC/BOO basis to add 8840 MW between 2002 to 2008 of power to the nation with projects in Jammu & Kashmir, HP, MP, Uttaranchal, Gujarat, Sikkim & Bhutan. In Power Sector the Group is biggest producer of hydropower in the country in private sector.

Jaiprakash Associates Ltd is the 3^rd largest producer of cement of the country with Installed Capacity of 14.70 MnTPA, poised to be 25 Mn Tonne per annum by 2010 is having country's largest single location cement facility of 7 million tonnes per annum at Rewa in MP. In Joint Ventures with Steel Authority of India Limited (Navratna Company of Govt of India), the Company is also establishing two Cement Plants of 2.2 MnTPA & 2.1 MnTPA capacity at Satna in MP, Bhilai in Chattisgarh & Bokaro in Jharkhand.

The bids for setting up the cement plant were invited by Govt of Assam in Jun-07 and in all 23 companies participated in the bid. After opening of the bid in Aug-07, Jaiprakash Associates Limited was declared the successful bidder by offering highest amount of facilitation fee & free equity to AMDC.

The MOU was signed by Sh Manoj Gaur, Executive Chairman, Jaiprakash Associates Ltd and Sh J P Baruah, Managing Director Assam Mineral Development Corporation Limited in a function at Gauhati in presence of Sh Tarun Gogoi Ji Hon'ble Chief Minister Assam. Jaiprakash Associates Limited by S/Sh Manoj Gaur Executive Chairman, Pankaj Gaur Joint Managing Director Harish Vaid Senior President (Corporate Affairs) & Brig (Retd.) Parvinder singh.

The joint venture company, to be incorporated shortly, shall set up cement project at Umrangshu District Halflong North Cachhar Hills in Assam based on the limestone reserves of 157 Mn Tonne in the region. The project during construction phase will offer employment to 3000 persons & after completion direct employment to 1500 persons & cascading employment to over 10,000 persons shall be generated which will result in overall socio economic growth of the region.

Sh Manoj Gaur informed that the total project cost for setting up this plant is estimated to be Rs 1050 crore. Jaiprakash Associates Ltd shall have 82% equity in the new joint venture company with the balance 18% allotted free of cost to Assam Mineral Development Corporation. Sh Gaur informed that in line with the corporate philosophy of the Group, the company will open school & hospital at Cement project with facility of free medical treatment to the residents of the region.

With this new joint venture plant, the Jaypee Group shall get access to fast growing markets of Eastern India including the north-eastern states.