India: Reliance Cement's 2Mt/yr cement plant in Rae Bareli in the state of Utter Pradesh has become operational. The company's aim is to capitalise on the huge demand-supply gap in the state, according to chief executive officer Arvind Pathak.

At present, the cement market in Utter Pradesh is estimated at around 26Mt/yr, while the total cement production in the state stands at about 16Mt/yr, leaving a 10Mt/yr shortfall. Uttar Pradesh and Maharashtra are among the top cement consuming states in India. Pathak said the cement market was expected to grow by 6%/yr in the near future and that Reliance Cement was well positioned and equipped to fulfil the gap in demand and supply.

The company has invested about US$82.2m in the Rae Bareli plant, which will also consume about 600,000t/yr of fly ash. Reliance Cement's subsidiary, Reliance Power, which runs a 1200MW thermal power plant in Shahjahanpur district, will transport fly ash generated from its unit to the cement plant for consumption. "We aim to become among the top-three cement companies in India with total capacity of 50Mt/yr," Pathak added.

The company is also developing two 5Mt/yr capacity cement plants at Maihar, Madhya Pradesh and Yavatmal, Maharashtra.