Steel Authority of India Ltd (SAIL), India’s largest steel company, is planning to tie up with leading cement producers like ACC, Birla Corporation and Jaiprakash Associates for setting up cement plants.
The public sector steel major has invited expressions of interest for setting up two cement plants, one each in Bhilai and Bokaro, the location for two of its biggest steel units. SAIL will have a 24 per cent stake in the joint ventures.
Sources close to the development said SAIL was in the final stages of partner selection for Bhilai, while the tendering process was on for the Bokaro plant.
Among the shortlisted bidders for the Bokaro plant are ACC, Birla Corporation and Jaiprakash Industries. ACC’s Executive Director AK Jain said, “I have not heard about this expression of interest, but ACC is buying slag from Bokaro.”
For the Bhilai plant, the sources said, Shree Cements and Jaiprakash Industries were in the fray. HM Bangur, managing director of Shree Cements, confirmed the development.
The main purpose of the joint venture is to utilise the huge amount of slag generated from the steel plants.
SAIL will bring its limestone mines to the table in the projects, apart from some proportionate investment as a joint venture partner.
Given the existing steel capacity of the two plants, the joint ventures could hope to produce about 1.5 million tonne of cement. But the capacity could go up once the ongoing expansion at Bhilai and Bokaro is completed.