Published On:September 1 2007
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SAIL, J.P. Associates to form venture for cement plant
Kolkata: Steel Authority of India Ltd (SAIL) has firmed up plans to form a joint venture with J.P. Associates to set up a two million-tonne per annum capacity cement plant in Bhilai. SAIL will hold 26 per cent in the proposed joint venture, which will produce cement using the slag generated in the blast furnace of Bhilai Steel Plant.
SAIL, to ensure raw material security in the long term, has also proposed to form a joint venture with Manganese Ore India Ltd (MOIL) for setting up a ferro manganese and silico manganese manufacturing facility at Bhilai at an estimated investment of Rs 225 crore.
It will also acquire a stake in a special purpose vehicle to be floated jointly with Rastriya Ispat Nigam Ltd, Coal India Ltd, National Thermal Power Corporation and National Minerals Development Corporation for acquisition of coal mines abroad, according to Mr S.K. Roongta, Chairman of SAIL.
'The steel industry globally is forging tie-ups and alliances to ensure their raw material security. We are also doing the same,' he said.
Addressing a news conference here late on Wednesday, Mr Roongta said SAIL had urged the Jharkhand Government to renew the lease of Chiria iron ore mines, which has proven reserves of two billion tonnes.
In lieu thereof, SAIL has committed to set up a six million tonnes per annum capacity steel plant in Jharkhand with a view to ensuring value addition within the State.
Mr Roongta said that ongoing projects and brownfield expansions entailing an investment of Rs 25,000 crore would be completed by 2010.
Domestic steel production was estimated to touch 180-190 million tonnes by 2020. To retain market share, SAIL's production by that time would have to be around 60 million tonnes.
In 2007-08, SAIL expects to produce two million tonnes of additional hot metal from its existing resources. With this, SAIL's hot metal production would go up from 14.5 million tonnes per annum at present to 16.5 million tonnes.
In 2007-08, crude steel production would go up from the current level of 13.5 million tonnes to 15.4 million tonnes while saleable steel would go up from 12.5 million tonnes to 14 million tonnes.
Stainless steel production at Salem Steel Plant was slated to go up from 1.9 lakh tonnes at present to three lakh tonnes per annum.