India's Bihar govt approves capacity expansion at Dalmia Cement's Rohtas plant

India's Bihar state government has approved a capacity expansion at the Rohtas Cement Works operated by Dalmia Cement (Bharat) Ltd., the state government said in a statement Jan. 13.

Under approval from the state's Department of Industries, the plant's production capacity will be raised by about 50% to 1.5 million metric tons/year from roughly 1 million mt/y, with the project involving an investment of about Rupees 1.07 billion ($13 million-$14 million), according to the statement.

"This expansion reflects the state's commitment to promoting industrial growth and employment generation in Rohtas district," Bihar Department of Industries Secretary Kundan Kumar said, adding that the project is expected to create several hundred direct and indirect jobs.

Dalmia Cement did not respond to a request for comment Jan. 14.

Market participants across Asia said the incremental capacity could intensify competition in India's domestic cement market, where major producers continue to add capacity.

Traders in the region added that the expansion is likely to be directed mainly toward domestic consumption, with minimal impact on the wider seaborne clinker trade.

"This expansion, similar to the recent capacity increases by NCL Industries and Deccan Cement, is expected to be absorbed largely by India's domestic market," a Southeast Asia-based trader said.

Platts, part of S&P Global Energy, last assessed cement (ASTM type I) FOB Vietnam at $37/mt on Jan. 8, stable week over week. Platts assessed cement clinker FOB Vietnam at $32.25/mt, up 25 cents/mt over the same period.