SAIL, J.P. Associates to ally for cement plant

SAIL, J.P. Associates to ally for cement plant
16 March 2007

Steel Authority of India Ltd (SAIL) has firmed up plans to form a joint venture with J.P. Associates to set up a 2Mta 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.
Published under Cement News