The Union Steel Ministry has nominated State-owned steel makers to lead joint ventures with four iron-ore bearing States – Odisha, Chhattisgarh, Jharkhand and Karnataka – for creating an additional 24 million tonne per annum steel making capacity.

Going by the thumb rule, the projects should attract investments worth ₹1,44,000 crore.

Steel and Mines Minister Narendra Singh Tomar told reporters at Rourkela on Sunday that SAIL, RINL and NMDC would form separate special purpose vehicles for the proposed steel plants as well as captive iron ore mining in each State.

Rourkela plant

The minister was here to review the progress of the modernisation and expansion programme at the Rourkela Steel Plant of SAIL.

RSP is set to expand its capacity from 2.1 million tonne per annum to 2.1 mt to 4.5 mt this month.

States and leads

“SAIL will lead such joint ventures in mining and steel making in Chhattisgarh. Rashtriya Ispat Nigam (RINL), better known as Vizag Steel, would lead JV in Odisha. In Karnataka and Jharkhand, NMDC would take the lead,” the Minister said.

Tomar said talks on the proposed projects had progressed in Odisha and Chhattisgarh. Deliberations on the projects with Jharkhand and Karnataka were likely to begin shortly. CS Verma, CMD of SAIL, said that negotiations were underway with Chhatisgarh on as equity involvement and ownership pattern.

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