Kolkata-based Braj Binani Group cement manufacturer, Binani Cement Ltd. has entered into a Memorandum of Understanding (MOU) with the Gujarat Government to set up a Greenfield cement plant of 2.5 MTPA capacity in the state.

The plant will manufacture Ordinary Portland Cement (OPC), Pozzolona Portland Cement (PPC) in various grades. It may be noted that the production of OPC to PPC will be ordinarily 50:50.

The proposed plant location will be at Lodhva village in Sutrapada District of Junagadh, which will be mechanically completed by December 2010 and commercial production will commence from April 2011.

Company officials quoted that the land requirement for the proposed plant is 188 hectares and for mining 1532 hectares. The project is estimated to cost Rs 825 crore.

In addition, Binani would also be required to the pay Rs17 crore per annum as the Royalty & Cess on Limestone to the Gujarat Government.

Market experts believe that latest alliance between the Binani Cement and the Gujarat Government will help in the upliftment of social infrastructure, general standard of living of people in the surrounding area and employment generation.