State-owned Steel Authority of India Ltd (SAIL) is engaged in talks with overseas steel manufacturers to import advanced manufacturing technology, steel secretary Atul Chaturvedi said on Thursday.
?We have realised the importance of new technology and have asked SAIL to actively look into it. The company?s heavy dependence on coking coal imports is making it a hostage to international price fluctuation,? he said.
SAIL is in talks with three firms including Japan?s Kobe Steel for their technology and with Posco for its finex technology.
Chaturvedi said, ?We have asked them (SAIL) to negotiate for new steel making technology after private companies like Tata Steel and JSW Steel have tied up with Japan steel companies for automotive steel products.? India?s largest steel maker imports 11-12 million tonne coking coal every year.
Chaturvedi sees India?s steel production at 115-120 million tonne by 2011-12, backed by expansion plans of both private players and SAIL. ?By 2010, we will require 220 million tonnes of steel in India,? he said.
?There is a strong domestic demand, which will be the main driver for capacity expansion. By FY 12 end, we should achieve the target. Otherwise, India will become a net importer of steel. The expectations from the infrastructure sector will increase the demand for steel.? he said.
Talking about state-owned NMDC Ltd?s follow-on public offer, Chaturvedi said the funds raised will be used to diversify the company?s portfolio.
Commenting on the disinvestment proposal of SAIL, he said, ?The proposal is under consideration of the law ministry. The disinvestment should happen in FY11. As far as the quantum of divestment is concerned, the decision will be taken in the current financial year.?