Star Cement Secures Boro Hundong Limestone Block in Assam; Shares Surge 3%

Star Cement Meghalaya, a subsidiary of Star Cement, has been declared the ‘Preferred Bidder’ for the composite license of the Boro Hundong Limestone block. The e-auction was conducted by the Government of Assam, granting the company rights to prospect and mine in the area.

Understanding the Composite License

A composite license, also known as a prospecting license-cum-mining lease, is a two-stage concession. It allows the licensee to first explore and evaluate the mineral deposits and then transition smoothly into mining operations if resources are deemed viable.

The Boro Hundong Limestone block is spread over 400 hectares in Dima Hasao district, Assam, and is estimated to contain 146.75 million tonnes of limestone reserves. This acquisition is a crucial step for Star Cement as it strengthens its resource base.

Share Price Reaction

Following the announcement, shares of Star Cement surged nearly 3%, touching ₹209.50 per share on the NSE as of 11:48 AM on March 18, 2025. Investors seem optimistic about the company’s expanding raw material base and future growth prospects.

Star Cement’s Expansion Plans in Assam

In February 2025, Star Cement unveiled plans to set up a ₹3,200 crore cement clinker and grinding plant in Assam. A memorandum of understanding (MoU) was signed between the Assam government and Star Cement during the Advantage Assam business summit.

This initiative is expected to bolster the cement supply chain in the northeastern region, reinforcing Star Cement’s market presence.

Other Key Investments at Advantage Assam Summit

The Advantage Assam 2.0 Investment and Infrastructure Summit 2025 witnessed major investment commitments, including:

• Matheson Hydrogen Lvt Ltd.: Signed an MoU to establish a ₹1,500 crore hydrogen and steam generation plant.
• Global Health Ltd.: Entered into a ₹500 crore agreement with the state government.
• ITE Education Service: Signed 2 non-financial agreements for skill development initiatives.

Assam Chief Minister Himanta Biswa Sarma expressed gratitude towards the investors for their commitment to the state’s industrial growth. A total of 164 MoUs spanning 15 sectors were signed on the first day of the summit.

UltraTech Cement’s Stake in Star Cement

In December 2024, UltraTech Cement announced the acquisition of an 8.69% minority stake in Star Cement. The transaction, valued at ₹851 crore, marked UltraTech’s strategic investment in the northeastern cement industry.

Star Cement’s Market Presence

With an installed capacity of 7.7 million tonnes per annum (MTPA), Star Cement has a strong foothold in northeastern India. The company is also expanding into West Bengal and Bihar, strengthening its distribution network across eastern India.

Conclusion

This recent limestone block acquisition, coupled with its expansion plans, aligns with Star Cement’s strategy to enhance capacity and secure long-term raw material supply in a growing market.

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