SAIL-Posco JV on rocks over share
If the JV with POSCO doesn’t materialise soon, the Indian steel maker is likely to explore an arrangement with another steel company to set up the special steel facility. It has initiated talks with Japanese steel companies such as Nippon Steel & Sumitomo Metal Corporation and JFE for an alternative arrangement, the sources said.
SAIL and POSCO first signed a memorandum of understanding in 2007 to set up a 3 million tonnes per annum steel plant near SAIL's existing steel making facility at Bokaro. Later, they subsequently inked a follow-up MoU in 2009 further expanding the scope of the joint venture that also envisaged the South Korean steel giant bringing its patented FINEX technology for steel making.
Sources in the steel ministry said that though efforts were on to salvage the JV, the MoU with POSCO may be allowed to lapse next year. They said they could not wait indefinitely to reach common ground.
When contacted, SAIL chairman CS Verma admitted that talks had not progressed for some time. “We are talking and are hopeful that the agreement would be signed soon,” he said, but added that if things did not move as desired, alternative routes would have to be
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