| VSP produces close to 13 lakh tonnes of slag as a byproduct from its two blast furnaces and the slag can by utilised to manufacture cement and has a stock pile of close to 60 lakh tonnes of slag. |
| VSP has been supplying these slag stocks to small and medium slag cement-manufacturing units in and around Visakhapatnam. VSP was selling slag to local cement manufacturers at throwaway rates, but has gradually increased prices as demand went up. |
| Out of the total annual production of about 13 lakh tonnes of slag, local cement units have been consuming only about two lakh tonnes of slag. |
| For the last 18 months big cement firms like Andhra Cements, OCL cements have increased their offtake of cement and now close to seven lakh tonnes of slag is being sold by VSP. The steel plant has also exported about four lakh tonnes of slag to countries like Sri Lanka, Bangladesh and the United Arab Emirates. |
| As demand for slag was slack in the initial stages, slag stocks have piled up abnormally in the plant and it has been facing severe space constraints. Now that VSP has found a good international market to sell slag they want to invite EoIs. |
| "At present, we have slag stocks of about 60 lakh tonnes in our yards and we want to export all these stocks. At present, VSP is getting around Rs 100 per tonne for raw slag in the international market. If we grind it, the price will go up to between Rs 120 and Rs 130 per tonne. Keeping this price variation in mind, we plan to set up one more slag grinding unit," Y Siva Sagar Rao, director (commercial), VSP, told Business Standard. |
| VSP plans to involve private parties to set up the slag grinding unit as the management feels that the private investor can invest money on setting up the grinding unit and if necessary VSP could provide the site for the proposed unit. |
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