A final decision on the proposed ventures for new iron-making technology for the steel giant will depend on techno-economic viability and regulatory approvals
Parliament has been informed that State-owned SAIL is in talks with South Korean steel major Posco and Japan’s Kobe Steel for technology tie-ups to jointly set up steel plants, reports PTI.
“In order to remain competitive, Steel Authority of India Ltd (SAIL) is exploring the possibility of a technology tie-up for new iron-making technology like ‘Finex’ from Posco and ‘ITMK3’ from Kobe Steel through the joint venture route,” minister of state for steel
A Sai Prathap said in a written reply to the Lok Sabha.
The minister said that a final decision on the JV project would depend upon techno-economic viability and regulatory approvals.
Last week, steel secretary Atul Chaturvedi had said that the government is hopeful that a deal between SAIL and Posco for jointly setting up a Rs-15,000 crore steel plant in Jharkhand would be clinched by the end of next month.
Posco’s ‘Finex’ technology uses iron-ore fines and low-quality coal to produce high-grade steel, which could be further processed by SAIL to make specialised steel.
Similarly, ‘ITMK3’ (Iron Making Technology Mark Three) is a technology developed and owned by Kobe Steel, which uses iron ore fines and thermal coal to produce premium grade steel.
SAIL and Posco have already signed a memorandum of understanding for supply of technology and technical knowhow.
Posco’s proposed Rs54,000-crore steel plant in Orissa has been delayed for over four years, mainly on account of problems with land acquisition. This has prompted the South Korean firm to start looking for alternative opportunities in States like Jharkhand, Karnataka and Maharashtra.