SAIL-NMDC joint venture to set up 6 million mt steel mill in India

Indian mining company NMDC and Indian steelmaker Steel Authority of India Limited (SAIL) will enter into a joint venture to set up a 6 million mt per year steel mill entailing an investment of INR 250 billion ($4 billion) in the central province of Chhattisgarh, an official at India's Steel Ministry told SteelOrbis on Wednesday, February 11. The country's largest iron ore miner, NMDC, and its largest steel producer, SAIL, are expected to sign a preliminary agreement later this month or in early March for setting up the joint venture company to implement the project, the official said.
 
Indian Minister of Steel and Mines Narendra Singh Tomar has already held talks with the provincial government of Chhattisgarh, seeking the latter's facilitation in providing land and power for the proposed project.
 
Both NMDC and SAIL will hold equal majority equity stakes in the joint venture company while a minority stake will be offered to a strategic partner, the SAIL official added.
 
The construction of the project is expected to commence around November-December 2015.