Steel Authority of India Ltd (SAIL) is branching out to offshore locations. The public sector steelmaker on Monday unveiled plans to set up manufacturing facilities in Indonesia, Mongolia, South Africa and Oman, each with 3 million tonnes annual capacity, investing a total $12 billion.
"We have already signed the memorandum of uderstanding with the Indonesian government and are in constant dialogue with the governments in Mongolia, South Africa and Oman for setting up the 3 mtpa steel plants," SAIL chairman C S Verma said on the sidelines of an industry conference.
"We are aiming to finalise all the plants in 2011-12. If all four plants are finalised, then the investment required would be at least $12 billion - $3 billion in each of them," he said.
SAIL proposes to finance the proposed investments on a 20 per cent equity and 80 per cent debt basis. SAIL may rope in a strategic investor to part finance the equity investment.
The plants will cater to local requirements in the respective countries and SAIL expects the plants to go on stream in three years after it signs a definitive agreement with the countries concerned.
SAIL, however, has asked the countries to ensure the availability of the requisite raw material and land for the proposed plants.