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India plans auto steel JV with Japanese, Korean firms at RINL

Steel News - Published on Fri, 14 Sep 2018

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Financial Express reported that the steel ministry has initiated talks with Japanese and Korean steel companies for setting up a 5 million tonnes steel plant through a joint venture with state-run Rashtriya Ispat Nigam in Visakhapatnam. The proposed venture, entailing an estimated INR 30,000 crore investment, would produce high-end steel meant for automotive and other sectors aimed at imports substitution. In preliminary discussions with the representatives of major steel producers including Posco held recently here, the ministry has ensured uninterrupted supply of iron ore, a key raw material in steelmaking and the required land, already in possession with RINL, for the proposed unit. Steel secretary Binoy Kumar told FE that the shareholding pattern of the proposed joint venture would be decided on commercial parameters.

The proposed venture will add muscle to India’s capacity augmentation effort, under which the government has targeted to jack up the domestic installed steel-making capacity to 300 million tonne per annum by 2030-31 from around 134 mtpa now. However, there is no foreign steel firm doing the manufacturing here, though many tried their luck in vain in the past.

South Korean major Posco had signed an initial pact with state-run Steel Authority of India (SAIL) in 2007 to form a steelmaking joint venture here but could not taste success. Russian firm Severstal’s plan for a joint venture with another state-run firm, NMDC, also failed to bear fruit. In both these cases, the overseas partners wanted to retain the majority stake in the venture, which SAIL and NMDC opposed, leading to their death even before they saw the light of the day.

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Posted By : Nanda Koijam on Fri, 14 Sep 2018
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