The decision of the farmers was conveyed to the division bench of Gujarat high court comprising Chief Justice S J Mukhopadhaya and Akil Kureshi, by their lawyers.
The lawyers representing Nirma Ltd had made an oral proposal of surrendering 46 hectares during the last hearing on April 1.
The matter has been scheduled for final hearing on April 12 and the Nirma Ltd has been asked to file an affidavit describing their proposal to release 46 hectares of land.
Nirma was given 268 hectares land for setting up a cement plant besides over 3,000 hectares for mining lease in the surrounding area across the coastline in Bhavnagar district.
From its 268-hectare-plot, the company has already surrendered 54 hectares to the government.
The proposal by Nirma came after the court pointed out a government report recommending that the cement plant can be set up on 168 hectares and 100 hectares can be taken back by the state government for the purpose of developing catchment area for reservoir.
The farmers from Mahuva taluka have come together and filed a petition under the aegis of Shree Mahuva Bandhara Khetiwadi Pariyavaran Ran Bachav Samiti opposing Nirma Ltd's cement.
According to them, out of the 268 hectare land alloted to the company, 222 hectares was part of a water-body.
As per the farmers, led by BJP MLA from Mahuva Kanu Kalsariya, the cement plant would destroy their agriculture, animal husbandry, besides causing irreparable damage to the environment.
The Gujarat high court had last month ordered a stay on all construction activities at the Nirma Ltd's upcoming cement plant in Mahuva while hearing a petition by farmers opposing it.
Move to summon Modi not final: Nanavati
'Clarify stand on summoning Modi'
Nirma's 'controversial' project gets govt nod
MBA programme from Nirma University