India: Malkhed plant receives government approval

The state government has, in principle, given approval to a proposal by Vasavadatta Cement, owned by Kesoram Industries Ltd, to establish a cement plant with a capacity of 4.5Mta with a provision to establish a 50MW power plant at Malkhed in Sedam taluk of Gulbarga district.

Vasavadatta Cement has already established a major cement plant on the outskirts of Sedam town. Now it proposes to invest INR16bn (US$297.2m) to set up its second plant at Malkhed with a promise to generate employment for 800 people.

The state government, in its order issued recently, decided to provide infrastructure, incentives and concessions to set up the plant.

The management of the cement unit has to submit a separate application to the Water Resources Department for allotment of water from the Kagina for the plant.

Apart from extending incentives and concessions as per the applicable industrial policy of the state, the Gulbarga Electricity Supply Company (Gescom) would ensure supply of 10MW to the cement plant. The order stated that the management will also have to get environmental clearance from the Ministry of Environment of Forest and also the Karnataka State Pollution Control Board.

The state government has also asked the management of the plant to prepare a plan for development of human resources required for the plant.