The government of Gujarat plans to treble its cement production capacity in the next 3 to 5 year. Proposals invited from cement companies like ACC, ABG, Ambuja Cement, Emami, Indiabulls, Adani group, Ultratech and L&T, the state hopes to raise its capacity from 20 mtpa to 70 mtpa.The state will host the biennial Vibrant Gujarat Global Summit in January 2011. At this event the cement sector may receive an investment proposals worth Rs 60,000 crore. Gujarat has 12,000 mt of reserves of limestone – the mineral used as raw material for manufacturing cement. Leveraging on this natural resource, the department of industries and mines had recently asked for specific plans from the companies willing to invest in this sector. During a conference organised by Industrial Extention Bureau, the investment promotion agency of Gujarat and industry body Confederation of Indian Industries (CII), Saurabh Patel, Minister of State for Industries and Mines said that they would make Gujarat the cement capital of India by adding 50 mt of capacity in next five years.With an annual capacity of 20 mt, Gujarat ranks fourth in the country in terms of cement production. Jaypee Group is coming up with a 4 mt plant and ABG will set up a 2.5 mtpa. Ambuja Cements is also expanding its capacity and Indiabulls proposed setting up of 8 mtpa per annum cement plant in Kutch with an estimated investment of Rs 4,000 crore. Recently new reserves for limestone have been discovered in Kutch district.As per the new limestone policy, cement companies are mandated to return 3 per cent of their annual production to the state government for building social infrastructure in backward areas. This will release an additional 1.5 mt of cement in the social sector.
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