Four Firms Join Race For Cement Foray With Sail

Kalyanpur Cement, DLF Cement, Gujarat Ambuja and Khaitan Hostombe Spinels have bid for a joint venture project with Steel Authority of India (SAIL) for setting up a 0.8 million tonne cement manufacturing unit near SAIL's Bokaro steel plant.

The plant will utilise the slag at the Bokaro Steel plant as raw material to manufacture cement on a commercial basis.

The move forms part of the public sector steel major's efforts to diversify its range of activities by forming joint ventures through either equity or technical participation.

During the process of manufacture of iron from blast furnaces, substantial quantity of granulated slag is generated. SAIL is interested in maximising disposal of the blast furnace granulated slag on a long term basis.

 

With the setting up of the slag cement plant at Bokaro, SAIL would have a regular outlet for disposal of granulated slag.

Top sources in SAIL however point out that the steel major is yet to decide whether it will participate in the equity of the proposed venture. The bids are currently being scrutinised by SAIL.

On the other hand the private promoters prefer an equity participation by SAIL which would reflect the steel major's commitment to the project.

The cement plant will be set up in the vicinity of the steel plant and will consume available granulated slag generated at Bokaro steel plant. The quantity of the slag available from the Bokaro steel plant is estimated to be around 0.7 million tonne per annum.

The proposed scheme is to set up the cement plant at Bokaro an the clinkering plant at Chilhati primarily due to techno-economic and environmental reasons.

However, the promoters can locate the clinkering plant at Bokaro itself if they find it a better alternative. According to specifications laid out in the tender, the plant should be able to process 0.7 to 0.8 million tonnes of clinker a year.

The contract for sale of granulated will be on long term basis, based on mutually agreed terms and conditions and shall provide for a suitable escalation clause.