Based on the outcome of the joint study, it said, definitive agreements for setting up the joint venture (JV) company will be put in place. The team consists of representatives from both the companies.
In line with the Make in India programme, SAIL and ArcelorMittal in May 2015 had entered into a pact to explore the possibility of setting up an automotive steel manufacturing facility under a JV in the country.
The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India's rapidly growing automotive sector, the annual report said.
SAIL had earlier sought help from the Niti Aayog to resolve differences with ArcelorMittal over the setting up of a Rs 5,000-crore steel plant.
A meeting was subsequently convened where both were asked to finalise their JV agreement, according to an official.
The government had earlier said the proposed auto-grade steel plant would be set up close to an automobile hub.