Gujarat Ambuja Cement Ltd (GACL), the fourth-largest cement producer in India, will be setting up a 1.2Mt grinding unit at Dadri in Western Uttar Pradesh with an investment of about Rs100 crore. GCAL has entered into an agreement with National Thermal Power Corporation (NTPC) to buy 360,000t of fly-ash per annum, which will be utilised for the manufacture of blended cement. GACL is looking for land in the vicinity of NTPC. The first phase is expected to commence from Oct 2004 with a grinding capacity of 0.6Mt, which will be increased to 1.2Mt by Dec 2006.