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SAIL forms JV with JAL for cement plant at Bokaro
New Delhi, February 25, 2008
Steel Authority of India Limited (SAIL)
signed a shareholder's agreement with Jaypee Associates
Limited (JAL) late last evening to form a joint venture
company called Bokaro Jaypee Cement Limited (BJCL), for
setting up a 2.1 million tonne capacity cement plant at
Bokaro. The signatories to the agreement were V.K.
Srivastava, Managing Director of SAIL's Bokaro Steel Plant
(BSL), and S.K. Sharma, Executive Vice-Chairman, JAL. BJCL
is SAIL's second cement-related joint venture business.
Equity participation by JAL and SAIL in BJCL will be in
the ratio of 74:26. |
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The initial authorised paid-up capital of the company will
be Rs. 50 crore raised through a debt-equity ratio of 70:30.
V.K. Srivastava will be the first chairman of BJCL while R.K.
Singh of JAL will be its first managing director.
The proposed cement plant at Bokaro will come up in just over
two years' time at an estimated cost of Rs. 405 crore. It will
manufacture cement using the slag generated by BSL's blast
furnaces.
SAIL has decided to diversify into cement production in a
phased manner. However, in order to leverage the competence of
established cement players, the company has decided to adopt
the joint venture route for diversification.
SAIL's first JV cement company, Bhilai Jaypee Cement Limited,
was incorporated in April 2007 for setting up cement plants at
Satna in Madhya Pradesh and Bhilai in Chhattisgarh. After
commissioning in 2010, the company will produce and market
more than 2 million tonnes of portland slag cement per annum.
SAIL is also exploring formation of a similar joint venture
company for utilisation of slag generated at Rourkela Steel
Plant for which selection of a joint venture partner is
already underway.
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