The Minister of Steel, Shri Beni Prasad Verma has said that the Steel Authority of India Ltd. (SAIL) has entered into Joint Venture agreements with M/s. Jaiprakash Associates Ltd. (JAL) for setting up of the following cement plants using blast furnace slag from Bhilai Steel Plant (BSP) and Bokaro Steel Plant (BSL). The details of production targets and actual production is given below:
(In Million Tonnes)
Company’s Name | Production Target | Actual Production | ||
Bhilai Jaypee Cements Ltd. (BJCL)* | 2010-11 | 2011-12 | 2010-11 | 2011-12 |
1.8 | 2.0 | 0.71 | 1.50 | |
Bokaro Jaypee Cements Ltd. (BoJCL) | ---- | 1.16** | ------ | 0.70 |
* Commissioned in June, 2010.
**Production commenced in July, 2011
In a written reply in the Lok Sabha today Shri Verma said, in case of BJCL, the company has not made any profits in the two financial years of its operations. In case of BoJCL, 2011-12 is the first year of operation.
He said, in the said Joint Ventures, the projects have been funded in debt equity ratio of 70:30. Equity share of SAIL is 26% and that of JAL is 74%. The project cost in respect of BJCL and BoJCL were envisaged as Rs.673.20 crore and Rs.445.50 crore respectively. As per the equity pattern of the Joint Venture Company, SAIL and JAL have made contribution of Rs.52.51 crore and 149.45 crore respectively for BJCL and Rs.34.75 crore and Rs.98.90 crore respectively for BoJCL.
The Minister said, both BJCL and BoJCL have indicated that lower availability of slag from BSP and BSL are impacting production of cement. Also, new market conditions and stabilization of the system resulted in the shortfall in the achievement of the target.