Steel Authority of India Ltd (SAIL) may finally be able to access Kobe Steel's patented steel making technology with the signing of a joint venture agreement over the next few months.
The joint venture is likely to be based at SAIL's Alloy Steels Plant at Durgapur, in West Bengal, SAIL chairman C S Verma said.
The project, which will put into use Kobe Steel's iron-making technology to make nuggets, is expected to cost Rs1,500 crore.
"We are engaged in a feasibility study about the proposed venture. We are also finalising the JV agreement and hope to complete it in the next three to four months. Following this, we are looking at finalising the JV," Verma said after a meeting with state chief minister Mamata Banerjee today.
The SAIL chairman had earlier said the two had completed detailed project report for setting up a 0.5 million tonne modular plant in India using Kobe Steel technology and were working on a joint venture agreement.
SAIL and Kobe Steel had signed separate MoUs for collaboration to study the possibility of producing high value products and for exploring technical and economic feasibility of ITmk3 technology for producing premium-grade iron nuggets using iron ore fines and non-coking coal.
The joint venture plant, proposed to be set up at Durgapur, will manufacture products for automobiles, nuclear and ordinary power plants such as forged material and tubing material as also special alloy steels and bars and stainless steel tube and/or any other product mutually agreed to.
The other MoU for exploring technical and economic feasibility of ITmk3 technology for producing premium-grade iron nuggets using iron ore fines and non-coking coal, however, has been gathering dust due to non-availability of gas.