JK Cements to double production capacity to 600 tonne/day
In an effort to bridge the huge gap between demand and supply of cement, state-owned Jammu and Kashmir Cements Limited is all set to double its production capacity from 600 tonne per day shortly.
August 03, 2011 / 16:31 IST
In an effort to bridge the huge gap between demand and supply of cement, state-owned Jammu and Kashmir Cement is all set to double its production capacity from 600 tonne per day shortly.
"The production capacity of the cement plant at Khrew, in Pulwama district of South Kashmir, is being increased from 600 tonne per day to 1,200 tonnes to bridge the huge gap between demand and supply of cement in the state," Industries Minister SS Slathia said.Slathia, who is also Chairman of Jammu and Kashmir Cements Limited, said despite having huge deposits of high quality limestone, the state imports a large quantity of cement from other states to meet its requirement."This trend needs to be reversed and the local cement plants need encouragement to fill the gap," Slathia said, addressing the Annual General Meeting of J&K Cements Limited here.He said J&K Cements Limited has been authorised to set up a 300 tonne per day clinker grinding-cum-packing unit at the Industrial Growth Centre (IGC) at Samba, in Jammu, for which nearly three acres of land has been acquired on a lease basis from SIDCO."The project is estimated to cost about Rs 27 crore," the minister said, adding that a New Delhi-based company has been appointed as a consultant for the project. He said a Notice Inviting Tender (NIT) for setting up the unit on a turnkey basis has been issued at the national level and a letter of intent (LOI) shall be issued in favour of the lowest bidder, a Noida (UP)-based company, shortly, he said.The minister directed the management of the company to further gear up its men and machinery to exploit the abundant limestone deposits optimally."Being a state-owned company, J&K Cements Limited has a pivotal role to keep reasonable checks and balance on cement prices in the open market by making its product cost-effective and affordable at reasonable rates," he said.The Managing Director of the company, Mushtaq Ahmad, said clinker and cement production touched an all-time high of 1.15 lakh tonne and 1.36 lakh metric tonne, respectively, last fiscal, whereas sales of cement amounted to over 1.37 lakh tonne.He said the company posted a profit of about Rs 2.28 crore last fiscal. "The company is providing employment to more than one thousand semi-skilled, skilled, specialised and super-specialised people directly or indirectly. In addition, about 200 distributors and sub-dealers are engaged in cement sales promotion of the company," Ahmad said.He said the company has paid about Rs 179.62 crore in taxes to the state and Centre up to March, 2011. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
