Vizag Steel ties up with private players to dispose of slag stocks

The Visakhapatnam Steel Plant (VSP) had tied up with three private players to clear off its blast furnace slag stocks.

The three firms are planning to invest about Rs 120 crore over the next one-and-a-half year to set up granulated slag grinding units on the steel plant's premises.

VSP currently generates more than 1.5 million tonne of BF slag as a by-product every year. This is expected to increase further, post its ongoing Rs 8,600-crore expansion works. Apart from this, huge slag stocks had piled up at the VSP stock yard during the last four-five years due to lack of takers.

Keeping this situation in view, the VSP management had called bids from interested parties for setting up grinding units using VSP slag, which could be used in cement manufacturing. In response to this, more than 10 firms evinced interest to join hands with the steel plant.

"Out of the 10 firms, we have short-listed three companies "� Steel Exchange India Limited, Prathusha Group and Nityasai Chemicals "� to set up slag grinding units. Under the agreement entered into with these companies, VSP will allot land to construct units and will supply 4 lakh tonne of slag a year to each of these firms on a mutual agreeable price," VSP sources told Business Standard.

VSP will allot about 10 acres of land to each of these firms to set up units. These companies should start the production within one year after allotment of land.

"Most of the granulated slag will be exported to other countries. If the export market is poor, we have the option to sell the product to domestic cement companies," said Krishna Rao, director of Steel Exchange India Limited.