India's longest and world's second longest iron ore slurry pipeline from Bailadilla in Chattisgarh to Visakhapatnam will be ready by July next year.
Hy-Grade Pellets Limited (HGPL), jointly promoted by Essar group and Stemcor group, UK, is laying this pipeline for its own requirement.
"Already 15 per cent of pipeline work is completed, the remaining work will be completed by 12 months from now," K V Rao, the managing director of HGPL told Business Standard here on Thursday.
HGPL produces 3.3 million tonnes of iron pellets at its Visakhapatnam plant, for which it sources iron ore from Bailadilla mines through railway wagons.
At present, HGPL is spending nearly Rs 430 per tonne to transport this iron ore from mines to plant. To avoid this expenditure, HGPL has taken up this 267-km-long slurry pipeline with an investment of Rs 300 crores.
"Once this project completed, the company hopes to save transportation cost of Rs 300 per tonne," Rao explained.
OAO Stroytransgaz, s major pipeline specialist company from Russia, and Essar Construction Limited have jointly taken up this 70 lakh tonnes capacity slurry pipeline work.
On completion of this project, HGPL will emerge as one of the world's lowest cost producers of high quality D R iron ore pellets, Rao said.
