The government today said it has asked state-owned SAIL and the world's largest steelmaker ArcelorMittal to expedite setting up of their proposed joint venture for a Rs 5,000-crore auto-grade steel plant.

"I think they (both the parties) have set certain timelines. They are moving on those timelines. We have asked them to expedite it (the proposed joint venture)," Steel Joint Secretary Sunil Barthwal said here.

He was speaking to reporters on the sidelines of India Steel Summit 2017 organised by Assocham.

When asked about the proposed joint venture, Barthwal said, "Both the parties are negotiating the final agreement. So, as soon as that is finalised they should come with it".

Steel Authority of India BSE 0.77 % (SAIL) and ArcelorMittal in May 2015 entered into a memorandum of understanding (MoU) to explore the possibility of setting up an autograde steel manufacturing facility under a joint venture in India.

There were some technical issues with regard to the JV which the government is trying to sort out, the official said.

The much-awaited joint venture will also focus on producing specialised grade steel products for defence, space and automobiles.

The proposed JV will construct a cold rolling mill and other downstream finishing facilities in India, touted as one of the fastest-growing automotive markets in the world with production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units.

A task force team comprising representatives from both SAIL and ArcelorMittal has been working on detailed due diligence and preliminary feasibility study and all other issues for setting up the joint venture company.

 

Source:economictimes.indiatimes.com

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