Jaiprakash Associates signs deal with AMDC to set up cement plant

GUWAHATI: Jaiprakash Associates Ltd (JAL), the flagship company of the diversified industrial conglomerate Jaypee Group, has inked a MoU with state-owned Assam Mineral Development Corporation Limited (AMDC) for setting up a 2 million tonnes per annum capacity cement plant.

This joint venture project will come up in Umrangshu in North Cachar hills. The total project cost for setting up this plant is estimated to be Rs 1050 crore.

According to press statement issued by the company, the bids for setting up the cement plant were invited by Government of Assam in June 2007 and 23 companies participated in the bid. After opening of the bid in August 2007, Jaiprakash Associates Limited was declared the successful bidder by offering highest amount of facilitation fee and free equity to AMDC.

The MoU was signed by Manoj Gaur, Executive Chairman, Jaiprakash Associates Ltd and J P Baruah, Managing Director Assam Mineral Development Corporation Limited in a function at Guwahati in presence of Tarun Gogoi, Chief Minister Assam on Friday.

The statement stated that the joint venture company, to be incorporated shortly.

The project during construction phase will offer employment to 3000 persons and after completion direct employment to 1500 persons and cascading employment to over 10,000 persons.