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SAIL-ArcelorMittal $1 billion JV talks on track
31 Aug 2016 12:26 PM | Source: PTI
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SAIL-ArcelorMittal $1 billion JV talks on track
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Steel Minister Chaudhry Birendra Singh met ArcelorMittal Chairman Lakshmi Mittal and discussed the proposed Rs 6,700-crore joint venture with SAIL to set up an automotive steel plant in India.
Singh held consultations on the JV with top brass of the world's largest steel maker here today along with senior official from the Steel Ministry and SAIL Chairman P K Singh, ArcelorMittal said in a statement.
"ArcelorMittal welcomed Singh, SAIL Chairman and Steel Ministry's Joint Secretary Sunil Barthwal to its London offices for discussions regarding the proposed USD 1 billion automotive steel JV between ArcelorMittal and SAIL," it added.
ArcelorMittal Europe group CFO and CEO Aditya Mittal, Executive VP and Head of global automotive Brian Aranha -- who is leading the JV discussions on behalf of ArcelorMittal -- also attended the meeting, the firm said.
"The project's Joint Working Group, which was established following the signing of the MoU, has completed the major part of the project's Feasibility Report," the steelmaker said.
Earlier this month, the steel minister had told reporters that the much-awaited JV between the steel giant and Maharatna PSU will be operational by December.
ArcelorMittal and SAIL had inked a MoU in May last year to explore the possibility of setting up an automotive steel manufacturing facility under a JV arrangement in India.
The proposed JV will construct world-class facilities for manufacturing automotive steel that will offer technologically advanced steel products for India's rapidly growing automotive sector.
The hot rolled input products for the proposed facility would be supplied by SAIL's new hot strip mill in Rourkela, Odisha, thus making the entire value chain indigenous.
The Luxembourg-based company said India is forecast to become the world's third largest automobilemanufacturing nation by 2026, with passenger vehicles likely to grow from around 3 million units today to over 7 million units in the next 10 years.
"In response to the growing level of automotive demand, and supported by the Indian government's 'Make In India' programme, which has been designed to transform India into a global manufacturing hub, automotive manufacturers have been establishing an increased presence in the country," it added