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SAIL forays into cement manufacturing
Steel Authority of India Ltd (SAIL) today forayed into cement manufacturing and signed a shareholder agreement with Jaiprakash Associates Ltd (JAL) to set up a joint venture cement manufacturing plant in Bhilai.
Steel Authority of India Ltd ( SAIL ) today forayed into cement manufacturing and signed a shareholder agreement with Jaiprakash Associates Ltd (JAL) to set up a joint venture cement manufacturing plant in Bhilai.
Earlier, in June 2006, the company had announced that it would form a joint venture with JAL to set up a cement plant with an annual capacity of two million tonnes. The new joint venture would be using the slag generated at the blast furnace in Bhilai Steel Plant (BSP) and also the idle assets of Satna limestone mines.
SAIL will hold 26 per cent stake in the joint venture, while JAL will be the majority shareholder with 74 per cent shareholding. SAIL will offer one million tonnes of granulated slag annually and provide land at Bhilai and Satna on lease to the new company, and JAL will organise debt and ensure project execution within defined scope, cost and time. JAL will also be responsible for project and operations of the joint venture company, according to a press release issued by SAIL.
The approximate cost of the project would be around Rs 600 crore and is expected to be complete in 37 months, the release added. BSP currently generates around 1.5 million tonnes of slag per annum, which is disposed through medium-term contracts to cement manufacturers. The use of slag in the cement plant would vastly reduce the problem of disposal of this blast furnace waste.
SAIL will hold 26 per cent stake in the joint venture, while JAL will be the majority shareholder with 74 per cent shareholding. SAIL will offer one million tonnes of granulated slag annually and provide land at Bhilai and Satna on lease to the new company, and JAL will organise debt and ensure project execution within defined scope, cost and time. JAL will also be responsible for project and operations of the joint venture company, according to a press release issued by SAIL. 
