Shortly after signing a deal with Posco, Shree Uttam Steel & Power promoter Ankit Miglani outlined details of the venture to Ishita Ayan Dutt. Excerpts:
Did Posco start talking to you once it realised the Odisha project was not going to go through?
We have been talking to Posco for a very long time, for the past few years actually, and the deal is a culmination of our talks.
What will the equity pattern of the JV be?
Posco will be a minority partner. At the moment, they are likely to have 20 per cent, but we could revisit the equity structure.
This venture doesn't have anything to do with Uttam Galva Steels in which ArcelorMittal is a partner?
No, Shree Uttam Steel & Power is a promoter-driven company. Uttam Galva Steels, in which ArcelorMittal has a stake, is a different venture.
Do you have the land?
Yes, we do. It's an around 2,000-acre plot and the environmental clearances are also in place.
What is the size of the project?
The three million tonne steel project is based on Posco's Finex technology and all the work we had done was blast furnace-based. But 1.5 mt, which is the first phase, could cost anywhere between $1 billion and $1.5 billion.
Now, that the memorandum of agreement (MoA) has been signed, what is the roadmap for this venture?
We have signed MoA and not MoU, so it's a proper agreement. We will start working on the detailed project report. Work at site should start by the next monsoon.
Since it is based on Finex technology, you will not need captive raw materials?
No, we don't need mines. The detailed project report will be done based on local raw materials.