ET reported that Ambuja Cements which is setting up two grinding units at Bhatapara in Chattisgarh and Rauri in Himachal Pradesh said that the project cost would shot up by 10% from earlier estimates of INR 1,600 crore due to increased commodity prices.

Ambuja Cements in its annual report said that "The total investment in these projects has escalated by around 10% mainly due to the steep cost increases for steel and civil engineering during the year.”

Ambuja Cements had earlier said that the cost of putting up these plants, having a total capacity of 4.4 million tonnes would be approximately INR 1,600 crore. It said that "Both the units are on track adding that the Bhatapara unit would go on stream in the middle of 2009 and the Rauri unit by the end of the current year.”

Ambuja Cements, which produced 17.8 million tonnes of cement last year, increased clinker production capacity at its Rabriyawas facility last year through upgradation, but this was offset by lower production as a result of unplanned stoppages at the Maratha and Darlaghat plants.

(Sourced from ET)