Kolkata-based Shree Cement on Tuesday said it plans to invest Rs. 2,000 crore to increase its cement output by two million tonnes within this fiscal and also raise power generation capacity by over four-fold by FY’12.
“We have earmarked Rs. 2,000 crore for expanding our cement and power generation capacities... Our annual installed cement production capacity will touch 12 million tonnes (MT) by March 2010... We are setting up two Greenfield facilities,” Shree Cement Executive Director M.K. Singhi told PTI.
The company, which has three cement plants in Rajasthan with an annual total production capacity of 10 MT, is setting up two new plants in Rajasthan and Uttarakhand with 1 MT per annum capacity each, he added.
“We are also expanding our power generation capacity to 260 mega watt (MW) by the end of this fiscal, which will eventually be ramped up to 560 mega watt by 2011-12,” Mr. Singhi said, adding Shree Cement is setting up two new units of 50 MW each and one 40 MW unit.
Earlier the company, which produces 120 MW from its captive power plants, had announced to pump in Rs. 1,200 crore in the next two years to set up a 300 MW thermal power plant in Rajasthan to foray into commercial power business.
Asked about the source of funding the projects, Mr. Singhi said, “It will be a mix of internal accruals and debt.”