A source in Mahagenco told TOI that the company produced about 100 million tonne fly ash every year. “This is provided to cement companies free-of-cost. About a third of the raw material used in cement production is fly ash. If this is not enough we have to pay 50% of the cost of transporting fly ash from our power plants to cement factories,” he said.
Earlier, the power generation companies had to supply fly ash for free to cement companies located within 100km radius of their coal-fired power plants. Now the central government has increased this distance to 300km. “This decision will increase our transportation expenses by three times and add to our power generation cost, which will be ultimately recovered from MSEDCL consumers,” the source said.
Mahagenco has decided to set up a subsidiary company for cement production. The name will be Mahagenco Fly ash Management Company Limited (MFMCL). A Mahagenco chief engineer will be the chief executive officer (CEO) of this company while outside experts will be appointed as directors.
MFMCL will form joint ventures with private cement companies. The latter will be majority partners in the JVs. Mahagenco’s contribution will be its land and fly ash. Other investment will be done by the private partner.
“The cost of a 50kg cement bag is about 300. Depending on our share in the JV, we will get a share in revenue and hence profit. Even if we earn 10 per bag, the total profit will be huge,” the source said.
If the venture is successful, it will reduce air pollution in the areas around power plants. Presently, flyash is transported in trucks to cement plants. Many times the transporters do not pour adequate water on the fly ash and it spreads around during transportation. Energy minister Chandrashekhar Bawankule had taken Mahagenco officials to task over this.
The source further said that the plan was in initial stages and talks were yet to be held with cement companies. “Setting up cement plants is a long process,” he added.
NAGPUR: Realizing that it is losing hundreds of crores every year by giving away fly ash for free, state-run power generation company Mahagenco has decided to set up cement plants by teaming up with cement companies. This is expected to provide huge revenue to the company and help in bringing down cost of power generation.
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