According to Gopal Krishna, managing director of the West Bengal Industrial Development Corp. (WBIDC), Lafarge is interested in setting up its first greenfield cement plant in West Bengal at Mejia in the Bankura district. Lafarge India Ltd., the Indian subsidiary of the French multinational, had earlier acquired the cement units of Raymond and Tata Steel to establish a combined capacity of 5 million mt. The new cement plant — at a cost of more than US$20,421,000 — would add 1 million mt to the company's total cement capacity. To secure financial incentives, Lafarge approached the West Bengal government whereupon discussions between the concerned parties were initiated.

Sources at Lafarge report that demand projections are currently being assessed, adding that West Bengal was already a cement-deficit state. The biggest demand for cement would emerge from the housing sector, which is expected to witness enormous activity, particularly with the coming up of the new town project in the eastern fringes of the city.