Financial Daily from THE HINDU group of publications
Monday, Jun 06, 2005
Financial Daily from THE HINDU group of publications Monday, Jun 06, 2005 |
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Corporate
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Diversification SAIL to forge tie-ups for cement, power plants at Bokaro Steel Kohinoor Mandal
Bokaro , June 5 STEEL Authority of India Ltd is planning to set up two new businesses in collaboration with other partners at its Bokaro Steel Plant (BSP). While one is in the cement sector, the other is a 500-MW greenfield power plant. The estimated cost of these two projects together would be Rs 2,550 crore. The SAIL board has cleared the proposal to set up a cement plant of an initial capacity of one million tonne a year. The capacity will later be enhanced to 2 mt. The second joint venture proposal on power would soon be placed before the SAIL board by BSP. The plant has suggested setting up two 250 MW power plants. The project would be carried out by Bokaro Power Supply Co Ltd (BPSCL), an existing 50:50 joint venture between Damodar Vallley Corporation (DVC) and SAIL. According to Mr U.P. Singh, Managing Director of BSP, the cement plant is been planned to take care of the huge volumes of slag (a by-product in the steel making process) generated everyday. Disposal of slag has become a major problem for all big steel plants. "We would soon be advertising for the expression of interest. All the major cement companies can participate in this bid. We are hoping to finalise our partner within two to three months. Thereafter, it would take us a year to set up the plant," Mr Singh told mediapersons at a press conference here. The cost of the cement plant, which would bring clinker from another source, is estimated to be Rs 320 crore. According to Mr Singh, the cost of the proposed power plant would be Rs 2,200 crore. Mecon has already prepared a feasibility report for this power plant. BSP has also identified 750 acres of land for this project. It may be noted that BPSCL was created in 2001, when SAIL decided to move out of its "non-core activities".
"We have suggested that the greenfield power project should come under our existing joint venture company with DVC, which is BPSCL. We are against creation of any new company," Mr Singh said.
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