State-run KIOCL Ltd, a 100 per cent export oriented unit, under the ministry of steel and mines, has shortlisted an equity partner for its proposed joint venture for setting up an integrated steel plant in Karnataka at an estimated investment of Rs 8,000 crore, a top company official said today.
“Due diligence is taking place on that. Consultant is going through the papers,” KIOCL Chairman and Managing Director K Ranganath told PTI here.
He expects the joint venture agreement to be signed in a month or two. “We are looking for (setting up) a plant within Karnataka. We will start with 1.5 million tonnes (capacity annually in the proposed plant) expandable to three million and later to 15 million tonnes”, he said.
On the extent of equity participation by the joint venture partner, Ranganath said: “I do not want anything less than 26 per cent".
He said he is in discussion with CMD of certain coal fields in Orissa. “They are in the process of giving one of their coal mines to us to do the mining”, Ranganath said, adding, the final capacity of this mine is likely to be 15 million tonnes. On the government reportedly looking for “synergy” between KIOCL and NMDC, he said discussions have been held and both companies have given their opinion. “I presume that KIOCL will continue to be an independent company”, he added.