The Government is keen that SAIL be part of South Korean steel firm Posco's proposed $12-billion steel plant in Orissa.
The Steel Minister, Mr Beni Prasad Verma, conveyed the Government's willingness that SAIL could be a joint venture partner to Posco officials here on Wednesday.
Mr Y.W. Yoon, Chairman and MD, Posco India Pvt Ltd, said the Indian Government's intent would be conveyed to the board of Posco.
The beleaguered Korean steel giant was granted environmental clearance by the Government in January this year, after a wait of almost six years.
Posco had signed a memorandum of understanding with the Orissa Government in 2005 for a 12 million tonnes a year plant. The proposed plant will be based on Posco's Finex technology that makes use of iron ore fines while eliminating the need for coking coal in the steel making process.
The Orissa Industrial Infrastructural Development Corporation has so far acquired 2,200 acres of the required 4,000 acres of land for the proposed project that has faced stiff resistance from locals.
Bokaro JV
Mr Verma also said a joint venture agreement between SAIL and Posco for a 3 mpta plant in Bokaro is likely to be signed in November. SAIL had signed an MoU with Posco last year for two units of 1.5 mtpa each in Bokaro based on the Finex technology.
The proposed joint venture also plans to set up a 1.5 mtpa cold rolled mill. Total investment by the SAIL-Posco joint venture in Bokaro is expected to be around Rs 17,000 crore.
Steel Ministry officials said discussions, especially on the pricing of iron ore for the proposed JV were in final stages. Posco is likely to hold majority stake and retain operational control of the proposed joint venture.