Shiva Cement Ltd, a subsidiary of JSW Cement Ltd, is set to invest over 1,500 crore in a new 1.36 million tonne per annum (mtpa) clinker unit project in the Sundergarh district of Odisha. The cement major confirmed that about 1150 crore will be funded via debt while the parent company will invest close to 150 crore through redeemable preference shares. The remaining amount is expected to be raised through a rights issue.
The project includes setting up of a 1 mtpa grinding unit, 8 megawatts of waste heat recovery power plant, 4 mtpa crushing plants at its dolomite and limestone mines.
Shiva Cement is expected to receive all regulatory and statutory approvals for the project soon. This clinker unit, once set up, will service JSW Cement’s manufacturing facilities across the eastern region.
“Shiva Cement’s plan to establish a new clinker unit further reaffirms our group’s commitment to investments in the state,” said Parth Jindal, Managing Director of JSW Cement. “The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage to service the needs of our customers in the region and further strengthen JSW Cement’s leadership position in the green cement category in India. We expect to commission the clinker unit by the end of next fiscal,” he added.
Notably, JSW Cement has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra. The company uses slag from its steel manufacturing units to produce portland slag cement and ground granulated blast furnace slag.
The clinker project contracts have been awarded to Thyssenkrupp Industries India and Larsen & Toubro, the company said. While Thyssenkrupp has been tasked to design and supply a new 4,000 tonnes per day capacity clinkerization unit, Larsen & Toubro has been contracted for Civil, Mechanical & Refractory erection work of the new clinker unit.