Korean steel major Posco is open to forge an alliance with the country?s largest steel producer, Steel Authority of India (SAIL), for its $12-billion steel plant in Orissa. The proposed steel project near Paradip has got stuck due to delays in clearances and opposition from the locals. A partnership with SAIL is expected to put the project on fast track and address the issue of raw material security.
??We will discuss the possibility of another joint venture with SAIL for Orissa plant with the Posco board soon,?? chairman and managing director of Posco India Yoon Yong Won told reporters after a meeting with steel minister Beni Prasad Verma here on Wednesday. The meeting was organised to discuss the progress on the proposed joint venture between SAIL and Posco to set up a three million tonne steel plant near the latter?s Bokaro steel plant.
??Bokaro is a very small part of our overall partnership with SAIL. We are looking at bigger tie-ups. As far as SAIL?s partnership for our Orissa plant is concerned, we will discuss it at our board level and then inform accordingly,? Won added.
Posco and SAIL have already entered an MoU to establish a strategic alliance for aligning and cooperating with each other in a wide range of strategic business and commercial interest areas. This includes information sharing on corporate planning, cooperation on development of mines, joint usage of each other?s existing marketing and warehousing network, coordination in procurement of coking coal, nickel and ferro-alloys and engagement of transportation vessels and R&D activities.