In early March 2006, Essar Steel commissioned the world's second longest iron ore slurry pipeline, it is learnt.

The 267 km long pipeline will connect Essar's iron ore beneficiation plant at Bailadila in Chhattisgarh to its pelletization plant at Visakhapatnam in Andhra Pradesh. The pipeline will traverse Chhattisgarh en route.

The Bailadila pipeline, built by Essar Steel, is designed to carry 8 million tpa of slurry and is expected to reduce Essar Steel's transportation cost from Rs.550 per tonne to about Rs.80 per tonne. The pipeline will help the company save at least Rs.200 crore every year, with its capacity set to increase to 4.6 million tpa from the present 3 million tpa.

The pipeline infrastructure includes two pumping stations and a valve choking station, apart from terminalling facilities at Visakhapatnam and Bailadila. The pumping operation from Bailadila to Visakhapatnam is monitored and controlled by a computerised supervisory system. The slurry pumps were supplied by Geho, Netherlands and a consortium of JSC Stroytransgaz and Essar Constructions executed the project.

The company is also in the process of commissioning the Rs.1,100 crore 8 million tpa iron ore beneficiation plant at Bailadila in Chhattisgarh.

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