Vizag Steel plans joint venture with NMDC

Vizag Steel plans joint venture with NMDC

Indian steel producer Vizag Steel, owned by Rashtriya Ispat Nigam Ltd (RINL) reportedly considers forming a joint venture with National Minerals Development Corporation (NMDC) to develop iron ore blocks. Vizag Steel officials stated that the talks are at an initial stage and yet to be finalized. The project is expected to back up RINL's capacity expansion plan. The company is planning to increase its annual steel production to 7 million tons by 2008 from the current 3.5 million tons. Apart from the iron ore project, RINL also sent a team of executives to Australia to seek a possible joint venture with one of the coal majors. However, RINL is hopeless about a joint venture since Australian coal producers are not eager to form joint ventures for the time being.