Steel major SAIL may join as the third partner in RINL-MOIL joint venture for manufacturing ferro alloy as its plan for a separate unit with the manganese ore producer may not see the light of day.
Rs. 600 crore
State-run MOILhad earlier inked two separate joint venture pacts with SAIL and Rashtriya Ispat Nigam to set up two ferro alloy plants with a total outlay of Rs. 600 crore. Ferro alloys are used in steel making for de-oxidising purposes.
The decision to set up the 3-way venture instead of going for two separate entities was taken at a recent meeting in the presence of Steel Secretary G Mohan Kumar, sources said.
SAIL Chairman C. S. Verma said that the earlier plan of setting up a 50:50 joint venture with MOIL has not been scrapped.
He admitted though that discussions were on to explore as to why a three-way venture for manufacturing of ferro alloys could not be formed.
MOIL, which proposed to have 50 per cent stake in the two proposed ventures, is the largest producer of manganese ore in the country.