Ambuja Cement eyes 20% of coal need from Gare Palma by 2021

Ambuja Cement expects to source one-fifth of its annual energy requirement from the Gare Palma IV/8 block by calendar 2021, company officials recently told at the Resurgent India Conference organised by Motilal Oswal.

The leading cement maker has started captive mining from Gare Palma block five months ahead of the schedule, which would substitute imported coal and bring down power and fuel costs, the company said in an investors’ meet.

“Full benefit of Gare Palma will be seen from calendar year 2021, when it will meet 20 percent of Ambuja’s energy requirement,” the research house said in a note post the meeting.

Ambuja Cement’s first coal mine – Gare Palma coal block – in Chhattisgarh’s Raigarh district was acquired through an e-auction in March 2015.

“This Green field project will play a crucial role in consolidating Ambuja’s position by ensuring energy security with a regular supply of this key raw material for our plants,” Ambuja earlier said in a communication.

While initially Gare Palma would be supplying to Ambuja Cement’s integrated cement plant at Bhatapara in Chhattisgarh. Later, as Gare Palma’s production is ramped up, coal would supplied to other plants as well.