Barak Valley Cements Limited




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Badarpur Energy Private Limited (BEPL) is a company incorporated as a Private Limited Company in February ’2005. Barak Valley Cements Limited has acquired the 100% stake of this company in the financial year 2005-06. Badarpur Energy Private Limited is setting up a 6.00 MW biomass based Power Plant having a total project cost of Rs 25 crore near our work site, at Badarpurghat for power generation. The distinct feature of this plant is that this unit will be using husk, major by-product of rice industry as a fuel for generating power and average cost of power is estimated to cost near about Rs 2.20* per unit. A Memorandum of understanding has already been signed between our Company & BEPL in connection with the transmission of power. Power generated in the plant will be transmitted through a dedicated transmission line to our operating plant and our subsidiary's plant Cement International Limited. This Power project has been appraised by NEDFi (North Eastern Development and Financial Institution).The total project cost as per appraisal report is rs. 2100 Lacs and the revised cost of project is Rs. 2985.55 Lacs. BEPL has engaged M/s Prithvi Energy Private Limited, as their technical consultants for setting up the proposed power plant. The North East Industrial and Investment Promotion Policy (NEIIPP), 2007 announced by the Government of India provides for the capital investment subsidy @ 30% of the investment made in the plant & machinery and the company shall be eligible for the capital investment subsidy and such other subsidies.

Barak Valley Cements Ltd has informed that Badarpur Energy Pvt. Ltd., the wholly owned subsidiary of the Company has acquired three tea Companies in the name of M/s. Goombira Tea Company Pvt. Ltd., M/s. Chargola Tea Company Pvt. Ltd. and M/s. Singlacherra Tea Company Pvt. Ltd. by way of acquisition of the entire shareholding of these Companies and takeover of management. Therefore, in accordance with the provisions of Section 4(1)(a) & (b) of the Companies Act, 1956, the three Companies have become the wholly owned subsidiaries of Badarpur Energy Pvt. Ltd. and therefore, as per Section 4(1)(c) of Companies Act, 1956, they have become the chain subsidiaries of Barak Valley Cements Limited

Subsidiaries under Badarpur Energy Private Limited (BEPL) :-

Goombira Tea Company Private Limited

Singlacherra Tea Company Private Limited

Chargola Tea Company Private Limited

The proposed project will help our Company to meet the problems faced on account of maximum demand limitation, higher power cost, frequent power cuts, variations in voltage etc. Our access to quality power at cheaper rates would also put our company at an advantageous position vis-a-vis other contenders.

Apart from this the proposed plant in BEPL is having some locational advantages also resulting smooth production of power. This project is located on national highway connecting Guwahati and Silchar due to which it has following locational advantages:

Well-developed paddy growing area will provide rice straw/husk, which can support 6 MW power generation capacity.

Our access to quality power at cheaper rates would also put our company at an advantageous position vis-à-vis other contenders.

Locational Advantages

The project is located on national highway connecting Guwahati and Silchar due to which it has following locational advantages:

Well-developed paddy growing area will provide rice straw/husk which can support 6 MW power generation capacity.

Railway station is 2.5 Km away. Hence rail transport can be used for transport of Rice Husk.

River Barak, 1.5 Kms from the project site will act as source of water throughout the year.

The detailed cost vise break up is as under:

		Amount (Rs. In Lacs)
Sr. No.	Description	As per our estimate	As per appraisal report
1	Land & Site Development	203.18	151.00
2	Building and Civil Work	367.84	339.21
3	Plant and Machinery	2016.42	1351.51
4	Engineering & Consultancy fees	36.24	-
5	Preliminary and pre operative expenses	299.18	159.00
6	Provisions for contingency	5.12	41.70
7	Margin money for working capital	57.58	57.58
	Total	2985.55	2100.00
	Less: Term Loan sanctioned by IDBI Bank	1400.00
	Funds to be financed through Equity	1585.55

Our Company proposes to invest Rs. 1585.55 lacs of the Net Proceeds in its subsidiary, Badarpur Energy Private Limited, by way of subscription to the equity share capital of Badarpur Energy Private Limited.