The 3-million tonne plant entails an investment of $4 billion.
The proposed steel plant to be set up jointly by state owned National Mineral Development Corporation (NMDC) and Russian behemoth Severstal in Karnataka may be commissioned by 2017.
The 50:50 joint venture project will come up over 2,800 acres of land at Bellary in the Southern state.
“The land has already been notified and once the final agreement between the two companies is signed next month, the process of land acquisition would start and we hope that the plant is commissioned by 2017,” NMDC CMD Rana Som told Business Standard here.
The plant is estimated to cost $4 billion and would be funded with 70:30 in debt equity ratio by the Indo-Russian partners.
“While, this would be the biggest Russian investment in the Indian steel sector, it would also bring the latest steel making technology to our shores and assign coking coal linkage to the project,” So added.
On its part, NMDC would assign iron ore linkage to the proposed three million tonnes (MT) annual capacity plant.
Earlier this month, NMDC and Severstal had signed ‘implementation protocol’ during steel minister Beni Prasad Verma’s visit to Moscow. In December 2010, the two companies had signed MoU to form an equal joint venture for the plant.
India, the world’s fourth largest steel producer, is planning its capacity rise to almost 200 MT by 2020.
At present, China is the global leader in steel production followed by USA, Russia and India. By 2020, we would overtake USA and Russia. By 2012-13, India’s installed capacity of steel is likely to be 110-120 MT.