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Iron ore slurry pipeline for Hy-Grade Pellets signed. Construction contract for Rs.300 crores
December 04, 2002

A contract for construction of an iron ore slurry pipeline from Bailadila to Vishakhapatnam was signed between Hy-Grade Pellets Ltd, a Joint Venture of Stemcor of the U.K. and Essar Group and OAO Stroytransgaz's consortium with Essar Constructions Ltd.

The 8 million tonne - 267 K.M. pipeline will transport iron ore in slurry form from Bailadila mines in Chattisgarh state to Hy-Grade's Pellet plant at Vishakhapatnam replacing the present rail movement.

In the signing ceremony today, Mr Leonid V. Bokhanovskiy, First Vice President, OAO Stroytransgaz, Mr V N Paradkar, Executive Director & CEO, ECL and Mr. K V Rao, Managing Director, Hy-Grade Pellets Ltd. participated.

Mr K V Rao, Managing Director, Hy-Grade Pellets Ltd said "the company hopes to save transportation cost of Rs.300 per tonne with the completion of the project. "OAO Stroytransgaz will send specialists and supply special machinery / equipment for the implementation of the pipeline project. Zakhem Group of Lebanon are the EPC Contractors."
Mr Matthew G. Stock, Director, Hy-Grade Pellets Ltd said "The finalization of the pipe laying contract with OAO Stroytransgaz will allow the construction to commence in January 2003 and will be completed in 18 months. With the completion of this project Hy-Grade will emerge as one of the world's lowest cost producers of high quality D.R. iron ore pellets."

The Essar Group founded by the Ruia family is headed by entrepreneur-Industrialist Shashi Ruia and Vice Chairman Mr Ravi Ruia. Essar, a USD 3.66 billion Corporation, is in core sector businesses like Telecom, Power, Shipping, Project Construction, Steel and Oil.

Stemcor of U.K. is a leading international steel and raw material trading group with offices in over 30 countries.

OAO Stroytransgaz, is one of the biggest Russian Construction Corporations and world's major pipeline specialist company, is partnering with Essar Constructions Ltd, a leading EPC Contractor to execute cross country pipelines in India and the Middle East.
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