State-run power generation company Mahagenco has decided to set up cement plants by teaming up with cement companies. This move is expected to provide huge revenue to the company and also help it in bringing down the overall cost of power generation. The company produced about 100 million tonne of fly ash every year, which is provided to cement companies free-of-cost. About a third of the raw material used in cement production is fly ash.
Earlier, power generation companies had to supply fly ash for free to cement companies located within 100 km radius of their coal-fired power plants. Now the Central government has increased this distance to 300 km.