Tokyo Eastern Cement Company to build power plant

Tokyo Eastern Cement Company Limited, a subsidiary of Tokyo Cement Company(Lanka) PLC is planning to build, operate and manage a biomass power generation plant for utilization of power generated by it for its own use and for the sale of excess units of electricity to the national grid, Tokyo Cement Company Lanka announced in a Colombo Stock Exchange disclosure.

Tokyo Eastern Cement Company Limited which was incorporated on December 20, 2012 under the aegisof Board of Investment of Sri Lanka will also carry on the business of manufacture and dealer in cement, tile cement, cement products and cement value added products.

Tokyo Eastern Company Limited is entitled to fiscal and tax incentives for a period of five years. After the tax holiday period, a concessionary rate of 12 % income will apply. Based on preliminary estimates, the project would cost approximately Rs 8 billion at current exchange rate and will be financed mainly by the Holding Company's equity participation and bank borrowings. The project is expected to be completed by 36 months.

(IH)