A final decision on the proposed joint venture between Indian steelmaker Steel Authority of India Limited (SAIL) and the global steel giant ArcelorMittal to manufacture of auto grade steel in India, will be delayed by another two months, a senior Indian government official said on Monday, August 7.
The official said that the decision regarding the joint venture which was expected in July has been delayed as a government policy advisory body was mandated to facilitate a consensus between the two steel majors.
The National Institute for Transformation of India (NITI Aayog) has been tasked by the Indian government to file a report that will reconcile the differences between SAIL and ArcelorMittal and NITI Aayog needs more time to prepare the report, the official said.
The issues that will be looked into by NITI Aayog include sourcing of raw materials, pricing and technology transfer from ArcelorMittal to SAIL, the official said.
Meanwhile, the government identified at least four location for the proposed $800 million plant close to existing automobile manufacturing hubs in the country including one site at Sanand in the western Indian state of Gujarat, the official said, adding that the final choice of the site will be decided once the joint venture company is formed.