SAIL says JV with Posco still on, uncertain on timing

A day after Steel Minister Beni Prasad Verma cancelled his Korea visit over differences between SAIL and Posco on their proposed joint venture, the PSU said talks with the Korean company were "positive" but refused to give any time frame for signing the agreement.

The two firms plan to set up a plant to produce 3 million tonne a year of auto-grade steel, but they are yet to agree on the shareholding pattern in the Rs 16,000 crore joint venture.

SAIL Chairman and Managing Director CS Verma said the plans have not been called off and the two firms continue to discuss details.

"We are having a dialogue on a very very positive note. There were issues needed to be discussed with Posco. But I am not seeeing any major hurdle. We have not scrapped the deal," he said.

Playing down differences over the proposed plant at Bokaro in Jharkhand, SAIL chief said talks were progressing.

"It is not differences. We are discussing. I have to discuss all the pros and cons since it is a major investment. The technology is going to come to India for the first time. We want to freeze all issues for one and all," Verma said.

Steel Minister had yesterday stated that he may cancel his Korea in case contentious issues like the pricing of iron ore and shareholding pattern were not settled before his scheduled departure on November 5.

After a meeting late in the evening, he cancelled his trip.

While SAIL was pushing for 50% stake in the joint venture, the South Korean major wants the majority ownership for itself as it had the technology.

Posco's patented Finex technology, which would be used in the proposed new plant, is not being used any company other than Posco. Finex is an environment-friendly iron-making process where iron ore fines are directly used.