The agreement, which envisages the transfer of Tisco's cement business as a going concern is subject to the requisite government approvals including the transfer of mining lease. According to a Lafarge release, J J Irani, managing director, Tisco and the executive vice president of Lafarge Asia Pacific, Jean Desazars, signed the agreement. The transfer of business is expected to conclude by March 31, 1999.

Thomas Farrell, country manager of Lafarge in India, will be the chief executive officer for the cement operations - 1.1 million tonne clinker plant at Sonadih in Madhya Pradesh and 1.4 million tonne slag cement grinding plant at Jojobera in Bihar.

As part of their purchase agreement, Lafarge has entered into an exclusive long-term slag supply agreement that entailsthe continued supply of slag from Tisco from the day Lafarge takes over the operations. Lafarge has already received the Foreign Investment Promotion Board (FIPB) approval to set up a 100 per cent holding company which would in turn set up independent operating companies for manufacture and sale of cement.

The shareholders of Tisco have already approved the company's proposal to sell its cement division to Lafarge, the release added.