Looking at greenfield steel plant in Jharkhand
The JV will make high carbon ferro, silico manganeseTo form a special purpose vehicle for coal supplies
KOLKATA: As part of its plans to ensure raw material security, Steel Authority of India Ltd (SAIL) is planning to float a joint venture with Manganese Ore India Ltd (MOIL), another steel ministry PSU, SAIL Chairman, S. K. Roongta, said here on Wednesday.
Addressing his first press meet since assuming charge in August 2006, Mr. Roongta outlined other initiatives to tie-up raw material supplies in tune with the Rs. 40,000 crore brownfield expansion plan now under implementation.
He also announced a first-ever initiative of producing additional two million tonnes of hot metal next fiscal, without any capacity addition.
Mr. Roongta said that while the 50:50 joint venture would ensure supplies of high carbon ferro and silico manganese used for strengthening steel, for coal supplies a special purpose vehicle (SPV) was proposed to be formed with Rashtriya Ispat Nigam Ltd, National Thermal Power Corporation and Coal India Ltd (CIL) for stakes in thermal as well as coking coal mines abroad.
For the critical input of iron ore, he said the Jharkhand Government (where the Chiria mines are located) had recognised the need for meeting SAIL's requirement on priority basis for the next 50 years. SAIL was also willing to meet "the State's aspirations" of value-addition by planning a greenfield unit in Jharkhand, if its lease for three mines at Chiria and Gua was granted.