Business Line reported that Rashtriya Ispat Nigam Ltd is expediting one of its long pending projects a cement grinding unit to make use of the slag generated by blast furnaces and flyash.
The company has allocated 100 acres for the project and appointed a senior official and other staff to push it through.
RINL is setting up a 3 million tonne cement grinding unit, making use of 0.6 million tonnes of flyash, a million tonnes of slag from the blast furnaces and the rest being cement clinker. A JV will be formed for setting up the plant with the RINL having 26% equity in it.
According to sources, the site selected for the project is near Gangavaram Port. A valuer has been appointed to apprise the land cost and the project. At present rates, this may entail an investment of INR 500 crore or so including land cost. A consultant will be appointed for the project at a later stage and JV partners have not been identified yet.
Earlier, an expression of interest was invited by RINL for the plant, but a fresh tender will have to be floated now. The setting up of a cement plant has become urgent in view of the capacity expansion of RINL from 3 million tonnes to 6.3 million tonnes. RINL has ambitious plans to take up further expansion to 16 million tonnes by 2020.
In this backdrop, disposal of flyash and slag becomes a major problem and like other steel majors, RINL has no choice but to set up the cement unit.
Sources said that the company may even consider setting up a clinker plant at a later stage. The cost may go up to INR 1,000 crore to INR 1,500 crore then.
