Shimla, Sep 12 (IANS) Grasim cement industries, which is backed by the Aditya Birla group, is to build the proposed Rs.10 billion Sundernagar cement plant in Himachal Pradesh's Mandi district.

Grasim acquired the task of setting up the plant from the Harish Chandra Company in Mandi, some 180 km from here.

"All the employees of the Harish Chandra Company are now Grasim staffers," said A.R. Sheikh, liaison officer of the company.

Company officials said about 1,000 locals would also get jobs in this project, while over 10,000 would be indirectly employed in the setting up of this plant.

The state government had signed a deal with Harish Chandra in 1993 to set up the plant, which is to produce some 1.27 million tonnes of cement annually. However, work on the project could not start off due to the company's weak financial position.

The government now hopes the much-delayed project will become operational soon after being passed on to the Aditya Birla group.

According to Grasim officials, work on the plant is likely to start by the year-end and production is expected to start after 22 months.

Meanwhile, the state government has already invited bids for Al Sindhi, another proposed cement plant in Mandi district, and top cement companies have applied including multinational French giant Lafarge.