SAIL Approves Non-Binding Terms For JV With ArcelorMittal
SAIL approved a non-binding term-sheet for a joint venture with ArcelorMittal for a automotive steel plant.
The board of state-run Steel Authority of India Ltd. approved terms for an estimated Rs 6,000 crore ($929 million) plant with ArcelorMittal to cater to the automobile sector.
The deal will help the world’s largest steelmaker gain a foothold in India’s growing market. The two parties had initially agreed on a joint venture in 2015 but the deal was delayed as they couldn’t finalise the terms.
"Definitive agreements in this regard will be finalised in due course subject to financial viability,” SAIL said in an exchange filing. The two steelmakers are in talks with the state governments of Andhra Pradesh and Gujarat to acquire land for the project, a person with knowledge of the matter had told Bloomberg earlier.
ArcelorMittal’s earlier plan to build a 12 million metric tonnes a year steel plant in Odisha had failed after delays in getting land and mining permits.