‘Posco can have majority stake in JV with SAIL’

September 20th, 2010 - 4:36 pm ICT by IANS  

New Delhi, Sep 20 (IANS) The union government is not averse to Posco securing majority stake in the proposed Rs.12,000 crore joint venture between the South Korean steel giant and the state-run Steel Authority of India Ltd (SAIL), Steel Minister Virbhadra Singh said Monday.
“In principle, we are not opposed to giving a majority stake to Posco in the joint venture, for which we will be seeking cabinet approval in a couple of months,” the minister told reporters on the sidelines a global conference of engineers.

SAIL and Posco are negotiating a joint venture to set up a 1.5 million tonne integrated plant in Bokaro to produce high grade steel from low-grade iron ore and non-coking coal by using the world’s third largest steel company’s FINEX technology.

“The agreement between the companies is expected in the next two-three months,” Singh said.

Steel ministry officials had said the plant, to come on about 2,500 acres within SAIL’s steel plant at Bokaro, would cost about Rs.12,000 crore.

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