By Bizodisha Bureau, Bhubaneswar, November 25, 2020: Odisha-based Shiva Cement Ltd, a subsidiary of JSW Cement Ltd, has announced plans to invest over Rs 1,500 crore in a new 1.36 million tonne per annum (mtpa) clinker unit project in Sundergarh district, said a company press release. The project received an approval during the company’s board meeting held last month, it added.
The clinker unit is expected to be commissioned by the end of next fiscal.

For JSW Cement, the new clinker unit being established by Shiva Cement is part of its strategic roadmap to achieve 25 mtpa capacity by 2025. “Shiva Cement’s plan to establish a new clinker unit further reaffirms our group’s commitment to investments in the state,” Parth Jindal, Managing Director of JSW Cement was quoted as saying in the release. “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.

The Company will raise Rs 1150 crore through debt while it will invest Rs 150 crore through redeemable preference shares and the remaining through a rights issue.

Shiva Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary clearances. Once commissioned, this clinker unit will service JSW Cement’s manufacturing facilities across the eastern region, making Shiva Cement a strategic hub for JSW Cement’s operations in that part of the country. JSW owns 59% stake in Shiva Cement.

The new 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. The company will also build a 10 km-long overland belt conveyor to transport limestone from the mines to the manufacturing plant and own railway siding with 12-km long railway track up to Sagra station to ensure seamless transportation of finished goods to the market, according to the release.

The design of the plant incorporates best technologies and will be the most modern and energy-efficient, with waste heat recovery and co-processing unit using alternative fuels. Shiva Cement has already received some of the regulatory and statutory approvals and is on track to obtaining other necessary clearances.

Shiva Cement’s clinker project contract has been awarded to Thyssenkrupp Industries India and Larsen & Toubro. While Thyssenkrupp has been contracted to design and supply a clinkerisation unit with a capacity of 4,000 tonnes, Larsen & Toubro has been awarded the contract for civil, mechanical and refractory erection work of the new clinker unit.