SHIMLA, India (XFN-ASIA) – Lafarge is one of two firms to win approval to invest 170 mln US Dollar each to build new cement plants in India’s Himachal Pradesh state, where demand is expected to soar as new dam projects get underway, a local official said.
The proposed 2-mln tonne capacity cement plant would boost the output of Lafarge, one of the world’s biggest cement firms, in India by 40 pct to 7 mln tonnes, according to the latest industry figures. The state cabinet approved the Lafarge project yesterday for Mandi district, located about 100 kilometers north of the capital Shimla, a state official, who declined to be named, said.
The cabinet also approved a cement plant of the same size and investment for domestic firm Broh Shind in the Chamba district, 450 kms northwest of the state capital.
Mountainous Himachal Pradesh has extensive and rich limestone quarries, a key ingredient in cement production.
The state has major dam projects underway to tame five Himalayan rivers including the Ravi, Sutlej and Beas, all tributaries of the Indus River, which will require massive amounts of cement, the official said.