Ambuja Cements seeks more time

Hyderabad : Ambuja Cements Limited, part of the Holcim Group, has sought more time from the state government for executing its proposed greenfield cement plant at Nadikudi in Guntur district.The company had got all the necessary approvals, including limestone mining leases, way back in 2008 for the project, which was originally proposed with a 2-million tonne capacity along with a grinding unit at Kakinada with an investment of Rs 600 crore.

An industry analyst said project delays in the cement sector in AP were understandable considering the surplus capacities that exist in the state. AP has over 40 million tonne production capacity, including the ongoing expansion.

South, which has the largest installed capacity (90 million tonne in FY 2010) in the cement sector compared with any other region in the country, registered the lowest capacity utilisation of 76 per cent last year while the consumption within the region stood at 57 per cent, according to Ernst & Young.

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