State to examine Centre's proposal for Posco-SAIL JV

The Orissa government on Friday said it will examine the proposal of Union steel ministry for a possible joint venture partnership between Steel Authority of India Ltd (SAIL) and Posco India for the 12 million tonne per annum steel project proposed in the state.

“We are yet to examine the proposal of the Union steel ministry over the possibility of SAIL partnering Posco India for the steel project in Orissa. After we examine the proposal, appropriate steps will be taken. In any case, the decision for joint venture between SAIL and Posco will have to be taken by the two players,” said the state Chief Secretary B K Patnaik.

The Union steel minister Beni Prasad Verma on Wednesday had conveyed the government's willingness for SAIL to forge a partnership with Posco India for the South Korean steel giant's Rs 54,000-crore steel mill in Orissa.

Y W Woon, chairman and managing director of Posco India had said the Indian government's intent would be conveyed to the board of Posco. Posco had signed a Memorandum of Understanding (MoU) with the Orissa Government in June 2005 for the steel project. The proposed plant will be based on Posco's Finex technology.