Shree puts Karnataka project on hold, to expand Rajasthan works

Shree Cement has decided to put its Karnataka project on hold following issues with land acquisition and  now plans to expand its Rajasthan cement works.

The proposed plant, which would have been Shree Cement’s first venture outside north India, was meant to have a capacity of 6Mt. However, due to the project facing land hurdles, the company plans to expand its existing facility in Rajasthan.

“We had a very good quarter. It is time to move ahead. We had plans for moving out of North India with our two plants – in Karnataka and Raipur (Chhattishgarh). But because of land issues in Karnataka and procedural delays in Raipur, we have rather decided to expand capacity in Rajasthan at the existing unit over the next 2-3 years, where we have bought additional land,” Shree Cement managing director HM Bangur told Business Standard.

“Right now, we have 13Mta capacity there. We will add 3Mta over the next two years and in another one year the total capacity should be 19Mta,” he said.