The proposed joint venture (JV) between world's largest steelmaker ArcelorMittal and domestic steel giant...
SAIL is in final stages and may be finalised this month,
SAIL and ArcelorMittal have inked pact to set up a Rs 5,000 crore auto-grade steel plant.
"The ArcelorMittal and SAIL joint venture is in final stages and is progressing fast. The project may be finalised this month," Singh said while addressing media on three years initiatives and achievements of the steel ministry.
He said the JV will produce high-end steel based on latest technology.
Earlier, in March, the steel minister had said that SAIL and ArcelorMittal will resolve differences over setting up of this plant.
ArcelorMittal and SAIL had inked a pact in May 2015 to explore the possibility of setting up an automotive steel manufacturing unit under JV arrangement.
The JV will construct world-class facilities that will offer technologically advanced steel products for India’s rapidly growing automotive sector.
The hot-rolled input products for the proposed facility will be supplied by SAIL’s new hot strip mill in Rourkela, Odisha, thus making the entire value chain indigenous.
The Maharatna PSU does not produce automotive steel and the JV will help it expand its product portfolio.
The Luxembourg-based ArcelorMittal said India is forecast to become the world’s third-largest automobile manufacturing nation by 2026.
In an investor presentation the company had said the proposed steel plant will come up at a major auto cluster in India.
The country has four major auto clusters —- Pune-Chakan belt in Maharashtra, on the outskirts of Chennai in Tamil Nadu, Sanad in Gujarat and Gurgaon-Neemrana belt that covers two states, Haryana and Rajasthan.
Steel Authority of India Limited is the largest steel-making PSU in India. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products. The government of India currently owns about 75 percent of SAIL's equity and retains voting control of the PSU.