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Rs 5,000-cr SAIL-ArcelorMittal JV may be finalised this month: Govt

JV was inked in May 2015 to explore setting up of an auto-grade steel plant

Press Trust of India  |  New Delhi 

Rs 5,000-cr SAIL-ArcelorMittal JV may be finalised this month: Govt

The proposed joint venture (JV) between World's largest steelmaker and domestic giant is in final stages and may be finalised this month, Union Minister Chaudhary Birender Singh said on Tuesday.

and have inked pact to set up a Rs 5,000 crore auto-grade plant.

"The and 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 ministry.

He said the JV will produce high-end 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 is forecast to become the world's third-largest automobile manufacturing nation by 2026.

In an investor presentation the company had said the proposed will come up at a major auto cluster in

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.

First Published: Tue, May 23 2017. 16:46 IST