OCL India Limited (formerly known as Orissa Cement Limited) started operations in 1950 by setting up its first cement plant with a production capacity of 0.165 MTPA at Rajgangpur in the Indian state of Orissa (about 30 km from Rourkela). The company has been increasing its capacity steadily over the past 10 years and presently has cement production capacity of 1.85 MTPA, which makes it one of the main producers in the eastern region of India.

The company also operates in the refractory and sponge iron businesses. OCL is the largest private sector producer for blast furnace bricks, refractory bricks, coke oven silica bricks etc. The sponge iron division was started in August 2002 and OCL presently has four sponge iron kilns with a total capacity of 120,000 tpy.

OCL is a part of the Dalmia Group of Companies. The Dalmia family holds 61.16% of the equity capital.

The total project cost is estimated at $170 million. The proposed IFC investment is a $50 million A loan for IFC’s own account.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The clinkerisation unit is being set up at the existing OCL cement works at Rajgangpur in district Sundergarh of Orissa. The site is about 30 km from the city of Rourkela. The grinding unit is being set up at Kapilas, near village Mania in district Cuttack of Orissa.

The project will create new jobs in the state of Orissa, one of the poorest states in India with per capita GDP of only $168 (2004) against a national average of $594 (2004). It will expand the supply of cement in the eastern region where at present the capacity utilization rate is very high and this has lead to high prices. The expansion will permit OCL to become a larger and even more competitive producer in the region and help keep cement prices at reasonable levels; and in this way promote investments in infrastructure, and in industrial, commercial and residential construction.
Also, the project will contribute to the modernization of the local cement industry through the introduction of advanced production technology and know-how through local staff training by leading equipment manufacturers, contractors and experienced project managers.

IFC will play a key role in this project. It will provide much-needed long-term financing, which is not easily available in the market today. Also, it will play a developmental role by ensuring that the project meets World Bank environmental, social and safety guidelines.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The environment, health and safety and social aspect of the project that were analyzed included:

- environment and social assessment;
- corporate environmental, social, and health and safety management systems;
- national and local government permitting requirements;
- land acquisition, compensation and physical and/or economic resettlement;
- management of cultural property; land-use change impact;
- management of resource consumption including sources of power and energy, fuel storage and source and volumes of water consumed including efforts to minimize water use;
- management of emissions and discharges including emissions to air, recycling and treatment of process effluent and domestic waste water, ambient air quality and noise; management of hazardous material, hazardous and other wastes;
- community environment, health and safety during both construction and operation;
- fire and life safety and emergency response; and
- occupational health and safety during construction and operation.

The company has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. A discussion on the company’s plans to mitigate/minimize identified environmental and social impacts has been provided in the Environmental and Social Review Summary (ESRS) and an Environmental and Social Action Plan (ESAP). The company has publicly disclosed the ESRS and the ESAP in a manner and at locations specified later in this document.