ArcelorMittal, Uttam Galva in JV steel plant

Global steel major ArcelorMittal today said it is in discussions with its India partner Uttam Galva for jointly setting up a steel plant in West India.

"We are working with our partner (Uttam Galva) on something in west of India. ...There are certain projects and expansion ideas and we are evaluating them," ArcelorMittal CFO Aditya Mittal told PTI.

Meanwhile, market sources said that ArcelorMittal and Uttam Galva are in talks for setting up an estimated Rs 15,000-crore steel plant in Maharashtra. The plant will have an annual production capacity of 3 million tonnes, half of which is likely to come up in the first phase.
    
"State-owned consultancy firm Mecon is preparing the feasibility report for the project," the source said.
    
The Miglani family, the promoters of Uttam Galva, and ArcelorMittal entered into a co-promoter agreement last year. At present, ArcelorMittal holds about 34 per cent stake in Uttam Galva and the Miglanis hold about 38 per cent.
    
Uttam Galva, the country's largest galvanised steel producer in India, already runs a 1-million tonne specialised steel products mill at Khopoli in Raigad district of Maharashtra.
    
It imports the vital hot-rolled coil to make galvanised steel, which is used by automobile customers. Uttam Galva also imports inputs from its partner ArcelorMittal.
    
Meanwhile, on the talks for a joint venture with diversified group Indiabulls, Mittal said that the steel major keeps talking to various companies on different proposals and did not elaborate on specifics of the proposed deal.
    
In September, Indiabulls Group CEO Gagan Banga had said that the two groups were in talks for a JV in mining minerals like coal.
    
Sources had said earlier that the two companies are working to form a JV which will look at mining coal in Rajasthan, to start with.