Steel Authority of India (SAIL) will partner Jaypee Associates (JAL) for a proposed 2Mt cement plant at Bokaro, Jharkhand. The two will form a JV shortly, where Jaypee would have a majority stake. Jaypee outbid Shree cement for this partnership.
This would be SAIL’s second tie-up with Jaypee for a cement plant. The first JV was signed over two months back to set up a 2.5MTPA capacity plant at Bhilai. The proposed cement plant at Bokaro would use the slag produced by the Bokaro Steel Plant of SAIL. According to the plan, 1Mt of slag is likely to be supplied to the proposed cement unit annually. The implementation of the project may take three years.
The Bokaro plant will take Jaypee’s proposed production capacity to over 26Mta by 2011. The company has been aggressively expanding in this space for the past some time.
For SAIL, the foray into the cement sector would bring in additional revenue, even as the slag, a waste produced at its steel plants, would be beneficially utilised. At present, SAIL is selling the slag to cement companies but it was considered more beneficial to get into the cement business for better margins.