BOC IndiaTo Supply Gas To JSW Steel

BOC India Ltd has entered into a long-term contract to supply gas for the ongoing expansion programme of JSW Steel Ltd, formerly known as Jindal Vijaynagar Steel, at its Bellary unit in Karnataka, India.

JSW Steel is currently expanding its steel capacity to 7 million tonnes per annum from around 3.5 million tonnes per annum.

Under the contract, BOCI will supply JSW Steel over 3,000 tonnes per day of gaseous oxygen, nitrogen and argon from a custom-built air separation unit.

To meet this requirement BOCI will set up one of the largest build-and-operate on-site air separation plant in the country.

In addition to meeting JSW Steel's gases requirements, the plant will also produce liquid products to meet the growing demand from customers in southern India, the release added.
Financial details were not given.

The press release issued by BOC stated that the proposed ASU would be its largest such unit in Asia and it is expected to be commissioned in 2008. It would meet all the gas requirements of JSW Steel.

Last year, BOC and JSW Steel entered into another agreement for supplying 1,400 tonnes per day of oxygen and nitrogen.

An ASU is currently under construction by a BOC joint venture company. Commercial production expected to start later this year. In addition to its major air separation plants in Jamshedpur, Tarapur and Taloja, BOC has recently commissioned its latest merchant ASU in Hyderabad.

For the year ended March 31, 2006, BOC India has registered a turnover of Rs 560.93 crore, marking a growth of 32 per cent over the previous year.