VicatSagarCement

completed

Vicat Sagar Cement (the “Company” or “JV”), a joint venture between Vicat Group of France and Sagar Cements Ltd. of India, and Vicat Group acting as the lead Sponsor, proposes to build in two phases a greenfield 5.5 million tons per annum (“mtpa”) cement plant, comprising two similar production lines, each with a capacity of about 2.7 mtpa, in Karnataka, Southern India. The Project (“Vicat Sagar” or the “Project”) involves the construction of the first line in the first half of 2012 along with most of the necessary infrastructure for a two-line plant, a 60 MW captive coal-fired power plant (40 MW in the first phase) that may be equipped with a waste heat recovery system. The estimated cost of the project is US$345 million inclusive of contingencies, initial working capital and finance charges. The construction of a second line will depend on market conditions. The project also entails the construction of a rail spur and a high voltage "security" connection to the Karnataka grid. The project shall be located in Gulbarga cluster, an area of rich and extensive limestone deposits, where two existing cement plants and one scheduled for commissioning by the end of 2009 are located within a 15 km radius of the proposed Project. All three plants have a one mtpa capacity. Another plant with 2.5 mtpa capacity is in the pipeline in the project vicinity. The Company will source additional inputs (laterite, bauxite, fly ash and slag) for the production of clinker and blended cement from existing operations including power plants, mines and quarries. All the additional inputs shall be sourced from within the states of Karnataka, Tamil Nadu and Andhra Pradesh.