Reliance plans to have an installed capacity of 5 million tonne per annum (mtpa) at the plant.
According to official sources, the Karnataka government is expected to sign an MoU with Reliance during the forthcoming Global Investors Meet scheduled in the first week of June.
Anil Ambani-led Reliance Infrastructure (Rel Infra) has a subsidiary, Reliance Cementation, to set up cement plants across the country. During the last year's annual general meeting, Anil Ambani disclosed the company's intention of creating cement capacity of 20 million tonne per annum with an investment of nearly Rs 10,000 crore over the next five years. If this target is achieved, Reliance Cementation has a chance to become one of the top five players in the country.
According to sources at the Karnataka industrial department, the government is keen on finalising the cement project as soon as possible as it would be a good signal for other big-ticket entrepreneurs to invest in the state, particularly in the cement segment.
The state has developed ten sector-specific industrial zones, including one for cement, in the state. The cement corridor covers Gulbarga, Bagalkot, Chitradurga and Belgaum districts.
The state Cabinet has cleared the proposals of global cement giant Lafarge and Shree Cement. Both the companies would invest Rs 1,500 crore each to set up 3-mtpa cement plants in Gulbarga district. India Cements has also received the government nod for its plant.