| May invest Rs 12,000 crore in Jharkhand.
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| Steel Authority of India (SAIL) and Tata Steel, the country’s leading steel producer, may together invest Rs 12,000 crore in four coal mining projects in Jharkhand. Both the companies today announced the formation of a 50:50 joint venture company for coal mining.
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| The joint venture will identify, acquire and develop coal blocks in India. The company is evaluating four medium coking coal blocks in Jharkhand with estimated reserves of 600 million tonnes.
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| As and when the blocks are allotted, the company will develop and carry out mining operations for the captive requirements of SAIL and Tata Steel.
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| “The Indian steel consumption is bound to grow significantly from the current projections and we need an assured availability of a critical input such as coal for our expansion,” said B Muthuraman, managing director, Tata Steel.
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| Both the companies may think of extending collaboration to more areas such as iron-ore mining and steel manufacturing in the future, he added.
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| The first project is likely to be conceived in the next 6-8 months and will take 2-3 years towards execution. Each project can cost Rs 2,000-3,000 crore, he said.
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| SAIL Chairman S K Roongta said, “With both the companies having distinct strengths in coal mining, this JV company will generate synergy to ensure the security of coking coal supplies for both partners.”
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| Both the companies have lined up huge capacity expansion plans. Tata Steel increased its domestic capacity from the current 5 to 33 million tonnes, while SAIL is augmenting its capacity from 15 to 26 million tonnes. |
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