Steel Authority of India entered into an agreement with Jaiprakash Associates for Cement Production

IN A first of its kind public-private partnership in the cement sector, Steel Authority of India (SAIL) on Wednesday entered into an agreement with Jaiprakash Associates (JAL) to form a 26:74 joint venture company to produce 2.2 million tonnes of cement. The venture will spend Rs 600 crore to set up the new plant, which would use slag generated from SAIL’s Bhilai Steel Plant (BSP) as basic feed for cement production. The JV has already signed a 30-year agreement with BSP for supply of slag. SAIL will hold 26% stake in the venture while the balance will be held by JAL, a SAIL press release said. It is understood the clinker and partial grinding unit of the plant would be located in Satna (MP) and slag cement would be made in Bhilai. The project is expected to be completed in 37 months. SAIL is also looking at using its slag generated from Bokaro Steel Plant for conversion to cement. A source said JAL may be roped in as partner in that venture also. SAIL’s foray into cement production is important as cement prices have shot up in wake of demand overshooting supplies. The country’s current cement production capacity is 165 million tonnes. About 30 million tonnes of new capacity is expected to be added in a couple of years. SAIL currently sells slag to cement companies through mediumterm contracts but the exercise is not enough for a total disposal of its stocks. The JV would enable the company for more productive use of the waste generated by it while producing steel.

Courtesy: EconomicTimes
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