Sagar Cements: Investment of Rs 28 crore in captive power project

Sagar Cements Ltd., is going to make an additional investment of Rs 28 crore in an ongoing captive power production project and a new solar power plant. With this, the total investment in this plant is expected to go up to about Rs 98 crore.

This investment is expected to be funded through internal accruals and borrowings. This project is expected to be commissioned by March 2019.

The board of directors had approved the recommendation of its investment committee to revise the capacity of the coal based power plant, which is under implementation at its Mattampally plant. Its capacity will be revised to 18 MW  from 15 MW by an additional investment of Rs 23.66 crore.

This plant is expected to have a Circulating Fluidized Bed Combustion (CFBC) boiler, which is economical and in line with latest regulatory requirements of sulphur oxide's and nitrogen oxide's emission norms.

The company is also planning to install 1-MW solar based captive power plant which costs Rs 4.7 crore. This will also be financed through borrowings and internal accruals. It is expected to be commissioned by June 2017.

Sagar Cements had also completed the acquisition of BMM Cements in August 2016, and increased its capacity by 1MTPA (Million Tonnes Per Annum). Its focus on capacity expansion and strategy of new investments in various plants is expected to drive company's growth.

Sagar Cements is an Indian cement manufacturing company based in Andhra Pradesh. It manufactures various varieties of cement like Ordinary Portland Cement, Portland Pozzalona Cement and Sulphate Resistant Cement.