SAIL close to sealing deal with POSCO

May 7, 2010: The proposed joint venture between state-owned Steel Authority of India Ltd (SAIL) and the South Korean steelmaker POSCO is likely to be finalised by the month-end.

According to sources close to the development, a team of SAIL officials led by the chairman, S.K. Roongta, and the steel secretary, Atul Chaturvedi, is set to visit South Korea to take forward the joint venture negotiations. "The deal between SAIL and POSCO is likely to be finalised within this month. There had been Government-level discussions as well when the South Korean President had visited India in January. Next week, a team of SAIL officials, Roongta and the steel secretary are also going to South Korea to take the negotiations forward," said an official close to the development.

The joint venture is likely to be for building a Rs 15,000-crore, 1.5 million tons per annum steel plant on the land available in SAIL's Bokaro Steel Plant. POSCO is likely to hold 74 percent of the equity in the venture.
The proposed plant will utilise POSCO's patented FINEX technology. This will enable the use of iron ore fines and thermal coal for the production of high-grade steel.

The SAIL Chairman, however, declined to fix a timeframe on the conclusion of the deal, but said things were moving ahead. "There are several things to be discussed and sorted out so I can't really fix a timeline, but we are moving ahead. I'm sure it would be a win-win deal for both companies. POSCO has very good technology and operational practices and the joint venture would also help us bring those practices to our other plants. But, those details are yet to be negotiated," Roongta said.

Source: Business Line