"The initial and final strength of the concrete made using the slag sand is better compared to natural sand. It can be used in all construction activities and can replace river sand," Essar Steel chief executive Dilip Oommen told PTI.

Sand is in high demand – and in tight supply -- in India as the country builds out its cities and infrastructure. In fact, in the densely populated city of Mumbai, builders require 1,500 truckloads per day, PTI said.

The project is one of several that Essar already has implemented to reuse waste products.

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