The proposed joint venture (JV) between World's largest steelmaker ArcelorMittal and domestic giant SAIL is in final stages and may be finalised this month, Union Minister Chaudhary Birender Singh said on Tuesday.
"The ArcelorMittal and SAIL joint venture is in final stages and is progressing fast. The project may be finalised this month," Singh said while addressing media on three years initiatives and achievements of the steel ministry.
He said the JV will produce high-end steel based on latest technology.
In March, the steel minister had said that SAIL and ArcelorMittal will resolve differences over setting up of this plant.
ArcelorMittal and SAIL had inked a pact in May 2015 to explore the possibility of setting up an automotive steel manufacturing unit under JV arrangement.
The proposed JV will construct world-class facilities that will offer technologically advanced steel products for India's rapidly growing automotive sector.
The hot-rolled input products for the proposed facility will be supplied by SAIL's new hot strip mill in Rourkela, Odisha, thus making the entire value chain indigenous.
The 'Maharatna' firm does not produce automotive steel and the JV will help it expand its product portfolio.
The Luxembourg-based ArcelorMittal said India is forecast to become the world's third-largest automobile manufacturing nation by 2026.
The country has four major auto clusters -- Pune-Chakan belt in Maharashtra, on the outskirts of Chennai in Tamil Nadu, Sanad in Gujarat and Gurgaon-Neemrana belt that covers two states, Haryana and Rajasthan.