NMDC, Tata Steel sign MoU on possible JV

State-owned iron ore producer NMDC and Tata Steel today signed a Memorandum of Understanding (MoU) to examine the possibility of a strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants.

NMDC Chairman and Managing Director Rana Som and Tata Steel Managing Director H M Nerurkar signed the MoU at a ceremony here.

Describing the signing of the MoU between the two companies as 'historic', Som said it would be converted into a joint venture company later.

He said the two companies would set up a working group to explore and finalise the areas of cooperation and submit its report to a steering committee. Thereafter a decision to enter into joint venture would be taken, he said.

On equity structure, he said the working group would decide it and it would depend on the areas the two companies were going to operate.

Nerurkar said in the current scenario, in which the country's steel policy envisaged doubling of steel-making capacity over the next decade, an opportunity has come for both the companies to work together towards this goal.

Tata Steel and NMDC have planned to jointly address mining and steel-making opportunities, he said.