SAIL, Kobe steel JV

SAIL, Kobe steel JV in a month: Govt

State-owned Steel Authority of India (SAIL) is likely to finalise within a month, a joint venture with Japan's Kobe Steel for a 0.5 million tonne (MT) mill in West Bengal to manufacture special grade steel.

"SAIL is finalising a joint venture with Kobe Steel and it is likely to be signed in a month's span. The total investment in the project will be USD 400 million (about Rs 2,000 crore," Steel Minister Beni Prasad Verma told a news agency.

The JV will help SAIL acquire the Japanese company's patented technology, used for value added applications. The new unit will put into use Kobe Steel's iron-making technology to make nuggets.

Verma said that after the initial 0.5 MT project, to be implemented at Alloy Steels Plant at Durgapur, its capacity will be doubled to one MT by adding another 0.5 MT module.

As far as technology goes, this will be a first-of-its- kind venture for SAIL.
Verma said both the companies are likely to have equal stake in the JV.

Meanwhile, SAIL is also in advance talks to finalise a joint venture with South Korea's POSCO for a 1.5 million tonne steel plant at Bokaro entailing about Rs 16,000 crore investment, Verma said.