BHUBANESWAR, NOV 25
Odisha-based Shiva Cement Ltd, a subsidiary of JSW Cement Ltd, has announced plans to invest over Rs 1,500 crore in a new 1.36 million tonne per annum (mtpa) clinker unit project in Sundergarh district of the state.
This project also includes setting up of a 1 MTPA grinding unit; 8 MW waste heat recovery power plant; 4 MTPA crushing plants at its dolomite and limestone mines along with a 10 km-long overland belt conveyor to transport limestone from the mines to the manufacturing plant and an own railway siding with 12 km long railway track for seamless transportation of finished goods to the market.
Once commissioned, this clinker unit will service JSW Cement’s manufacturing facilities across the East Region and is expected to create around 500 direct and indirect job opportunities. Consequently, Shiva Cement is expected to become a strategic hub for JSW Cement’s operations in East region of India.
The company will fund this investment through a combination of long-term debt and equity. While Rs.1150 crore of the capital expenditure will be funded via debt, JSW will invest Rs. 150 crore through redeemable preference shares and the remaining through a rights issue.
Commenting on the new clinker project, JSW Cement Managing Director Parth Jindal said, “The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage to service the needs of our customers in the region and further strengthen JSW Cement’s leadership position in the Green category in India.”
“We expect to commission the clinker unit by the end of next fiscal,” he added.
The investment on the new clinker unit further reaffirms the group’s commitment to investments in the state, Jindal said adding that through this investment the company hopes to contribute to the overall economic development of Odisha as well as create new direct and indirect job opportunities.
Jindal further said that the Company has already received some of the regulatory and statutory approvals and is on track to obtain other necessary clearances for the project.
The clinker project contracts have been awarded to Thyssenkrupp Industries India and Larsen & Toubro.
For JSW Cement, the new clinker unit is part of its strategic roadmap to achieve 25 MTPA capacity by 2025, with a special focus on scaling up its presence in the Eastern region of India, the company said.