Toshali Cement's expansion project hangs in fire

Toshali Cement's (TCPL) capacity expansion of Ampavali plant in Koraput district of Orissa is clouded by uncertainties as the Industrial Development Corporation of Orissa (Idcol) has not yet taken a decision on TCPL's proposal for renewal of the mining lease for limestone mines for another ten years. The expansion project is estimated to cost Rs.240 crore.

Besides, the company has also sought approval from the Industrial Promotion and Investment Corporation (Ipicol) to expand its cement production capacity from the existing 600 tonnes per day to 2100 tonne per day. Ipicol is yet to take a decision on this issue.

TCPL had entered into a five year agreement with the state owned Idcol for raising limestone from Ampavali mines which will expire in September 2009. Accordingly, TCPL was given the mining lease for 50 percent of the total mineable area of 500 ha. At present, an internal committee constituted by Idcol is now examining the proposal and is likely to come out with a report soon. The committee may recommend for fixation of minimum raising capacity for TCPL which may be fixed at 25,000 tonne per month. It will be asked to pay full royalty to Idcol even if the raising is lower than this target. It may also ask the company to pay the royalty amount as agency fees. Besides, continuation of the security deposit of Rs 20 lakh in cash and Rs 30 lakhs in bank guarantee may also be recommended by the committee.


Source : www.projectstoday.com

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