New Delhi: Steel Authority of India Ltd (SAIL) on Wednesday said it has signed a formal agreement with Jaiprakash Associates Ltd to foray into cement manufacturing at an investment of Rs 600 crore.
The state run steel major, SAIL would hold 26 per cent stake in the joint venture company while the remaining 74 would be held by Jaiprakash Associates, the company said in a statement.
The joint venture company would set up a 2.2 million tonne per annum steel plant in Satna, Madhya Pradesh. The cement plant would utilise the slag generated at SAIL's Bhilai Steel plant, the statement said.
As part of the joint venture, SAIL is going to offer one million tonne of granulated slag annually and also provide land for the cement plant on lease, while Jaiparaksh would be responsible for raising debt and project execution. Jaiprakash will also be responsible for operation of the joint venture company.
"This is the largest joint venture that SAIL was embarking on with a partner from private sector. Steel and cement being the prime inputs for infrastructure development of the country, we are happy for our association with the cement industry," as quoted by PTI, SAIL Chairman S K Roongta said in the statement.
SAIL is also planning to set up a similar joint venture cement unit near its Bokaro facility.
Comments
0 comment