Shree Cement shares rose as much as 2.6% to hit an intraday high of Rs 31,441.05.Shares of the Rajasthan-based cement maker, Shree Cement, rose as much as 2.6 per cent to hit an intraday high of Rs 31,441.05 after the company announced capacity expansion plans in West Bengal and Rajasthan post market hours on Tuesday.

Shree Cement will be setting up a clinker grinding unit in West Bengal and an integrated cement plant in Rajasthan.

(Track Shree Cement share price here)Shree Cement's board approved setting up of cement plant at Gothra in Nawalgarh Tehsil of Rajasthan having clinker capacity of 3.8 million tonnes per annum and cement capacity of up to 3.5 million tonnes per annum.

The company is planning to invest approximately Rs 3,500 crore in the plant and is expected to be completed by the end of March quarter of 2024.

Shree Cements said that it will fund the plant via internal accruals and debt.The existing cement capacity of the Company is 43.40 million tonnes per annum.

During the year 2020-21, the utilization rate was 67 per cent, Shree Cement said in a stock exchange filing.Apart from cement plant, the company will also set up solar power plants having capacity up to 106 Megawatts-peak (MWp) to meet captive power requirement of cement plants of the company at various locations.

Shree Cement plans to invest Rs 500 crore in setting up solar power plants.Shree Cement's subsidiary, Shree Cement East Private Limited, will be expanding its capacity in West Bengal by setting up a clinker grinding unit at Digha Village and Parbatpur, in Purulia district.

The plant will have capacity of 3 million tonnes per annum and the company will invest Rs 750 crore mainly by way of equity contribution from Shree Cement, the company said added."The cement demand supply situation in West Bengal appears quite favourable and thus, investment in cement plant in the state would be a viable proposition," Shree Cement said as the rationale behind setting up Clinker Grinding Unit in West Bengal.As of 11:37 am, Shree Cement shares traded 0.25 per cent higher at Rs 30,720, underperforming the Sensex which was up 0.52 per cent.