SAIL, Posco differences over except shareholding issue

State-run SAIL today said it has finalised almost all but the shareholding issue with Posco for a Rs 16,000 crore proposed joint venture at Bokaro to produce three million tonne a year auto-grade steel.

"All issues have been frozen already and it is only the equity participation for which we are having a very positive and constructive dialogue," SAIL Chairman CS Verma said here today.

Shareholding of the proposed venture remained a hurdle for the two since they engaged in negotiations to look at the possibilities of a joint venture more than a year ago.

While Posco is keen on getting the management control of the venture with 51% stake, SAIL wanted to make it an even venture.

"We are having talks on a very positive path. It should happen in due course," he said.

The venture will use Posco's patented Finex technology, considered as an environment-friendly iron-making process where iron ore fines are directly used.

Asked whether the signing of the final agreement could happen during the Prime Minister Manmohan Singh's visit to Korea, Verma said, "I am not aware whether the issue will come up during the PM's visit. What I can say is that, we are on a very very positive path".

Verama said he was not a part of the delegation that is scheduled to accompany Singh to Korea.