Government-owned Steel Authority of India Ltd, the country’s largest steel producer, is looking to set up two greenfield slag-based cement manufacturing units with a total capacity of 3Mt through a joint venture.
"We will form two more joint ventures to set up cement plants at Rourkela and Burnpur. The Rourkela plant will have a capacity of 2Mt, while the Burnpur unit will have a capacity of 1Mt. The joint venture partners will be decided through a bidding process," chairman SK Roongta told Business Standard.
Setting up of these two units with a total capacity of 3Mt could require an investment of INR1100-1200 crore.
SAIL is already developing two cement plants at Bhilai and Bokaro through a joint venture with Jaiprakash Associates, which is a major cement player. The Bhilai plant, with a capacity of 2.2Mt, would be operational by mid-2010. The Bokaro plant, with a capacity of 2Mt, is expected to begin cement production by July 2011.
In both of these joint ventures, SAIL has a 26 per cent stake. The proposed new joint ventures are also expected to have a similar holding structure.
Through concurrent expansions at its five integrated steel plants at Bokaro (Jharkhand), Bhilai (Chhattisgarh), Rourkela (Orissa), Durgapur and Iisco Steel Plant. SAIL has targeted to step up its total steel production capacity from 14Mt to 23Mt by 2012.