State-owned Steel Authority of India (SAIL) and Shipping Corporation of India (SCI) today said they will set up a joint venture (JV) "very soon" that would provide shipping-related services to the former.
"We are making very good progress to set up the joint venture and hope it would be established very soon," SCI Chairman S Hajara told reporters here.
Echoing similar view, SAIL Chairman and Managing Director S K Roongta said that the companies are making good progress on setting up the JV.
However, both the officials declined to give a specific timeline for the JV or the investment planned.
The two companies had signed a Memorandum of Understanding (MoU) in 2008 to establish a JV that would render shipping-related services to the steel maker in importing the coking coal required for its mills.
The scope of the MoU also provided that the JV firm could also participate in the international shipping trade.
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While speaking on the sidelines of an event organised by Indian Chamber of Commerce, Hajara also said SCI will double its current fleet strength of 79 vessels in the the next 5-7 years with an investment of $3.5 billion.
"We will double our fleet of 79 ships in the next 5-7 years... The investment will be around $3.5 billion," he said.