Russia's largest steel producer Severstal and India's biggest iron ore miner National Mineral Development Corporation (NMDC) plan to set up a joint venture to build a 5 million mt capacity steel plant in the southern Indian state of Karnataka, the news agency Press Trust of India quoted NMDC chairman Rana Som as saying on Thursday. The total investments in the new plant will amount to INR 250 billion (about $5.54 billion).
Accordingly, the plant's capacity in the first phase is to amount to two million mt, which will be later ramped up to five million mt. The venture will produce auto grade and electrical steel to meet rising demand in the country, Mr. Som said.
NMDC and Severstal are to sign a memorandum of understanding to set up the joint venture on a parity basis on Friday.