Indian state-owned steel producer Steel Authority of India Limited (SAIL) has announced that it has approved the proposal for the signing of a legally non-binding term sheet with global steel giant ArcelorMittal S.A for entering into a joint venture (JV) for the automotive steel business. SAIL also stated that definitive agreements in this regard will be finalized in due course subject to financial viability.
In November this year, Indian government sources stated that SAIL and ArcelorMittal will form a 50:50 joint venture company to implement an auto grade steel mill in India. The formal memorandum of understanding for creation of the joint venture company will be signed early next year, after India's Ministry of Steel facilitates the ironing out of differences between the partners over equity participation in the proposed joint venture, according to the sources.