In your interest.
Online Personal Finance Magazine
No beating about the bush.
NMDC and Tata Steel have signed an MoU to examine the possibility of a strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants
State-owned iron ore producer National Mineral Development Corp Ltd (NMDC) and Tata Steel Ltd on Friday signed a memorandum of understanding (MoU) to examine the possibility of a strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants, reports PTI.
NMDC chairman and managing director Rana Som and Tata Steel managing director HM Nerurkar signed the MoU at a ceremony in Kolkata.
Describing the signing of the MoU between the two companies as 'historic', Mr Som said that it would be converted into a joint venture company later.
He said that the two companies would set up a working group to explore and finalise the areas of cooperation and submit its report to a steering committee. Thereafter, a decision to enter into a joint venture would be taken, he said.
On the equity structure, he said that the working group would decide on the same and it would depend on the areas in which the two companies were going to operate.
Mr Nerurkar said that in the current scenario, in which the country's steel policy envisaged doubling of steel-making capacity over the next decade, an opportunity has come for both the companies to work together towards this goal.
Tata Steel and NMDC have planned to jointly address mining and steel-making opportunities, he added.