Sail, RINL, NMDC to jointly set up steel plant

The three public sector enterprises the Steel Authority of India Limited (Sail), National Mineral Development Corporation (NMDC) and Rashtriya Ispat Nigam Limited (RINL) will set up a four million tonne per annum capacity integrated steel plant in Chhattisgarh. A memorandum of understanding (MoU) was signed on Friday by Sail director (personnel) G. Ojha, director (technical) NMDC Mr P.S. Upadhyaya and Mr M.V.R. Sarma, executive director (corporate affairs and strategy), RINL.
It has been decided that the three companies will have equal equity participation in the proposed steel plant which will be set up on a suitable site selected on the basis of a pre-feasibility report to be prepared by a consultant. “SAIL, which has expertise in steel, has taken the lead for having the pre-feasibility and feasibility reports prepared for the proposed joint venture and have nominated Mecon for the purpose,” said a Sail spokesperson. NMDC, with expertise in mining, will take the lead for obtaining land, mining leases, statutory clearances among other things required for a greenfield project of this size.
The MoU signed on Friday foresees leveraging of the synergies of the three PSEs to meet the growing demand for steel in India. SAIL and RINL have resources of skilled and technically competent manpower and are also implementing their own expansion plans for increasing production capacity to meet the growing requirements of a variety of grades of steel in a fast developing economy.