The world's largest steelmaker ArcelorMittal today said it is still in talks with SAIL for a possible joint venture even though the state-owned company is in process of finalising a similar deal with Posco.
"We have made a proposal to SAIL and we are in discussion with SAIL. With respect to SAIL we have not set any timeline," ArcelorMittal Group Management Board Member Sudhir Maheshwari said during a conference call after announcing a net income of $1.35 billion for the third quarter of 2010.
Two other global companies, Posco and Kobe Steel, had also expressed keenness for partnership with SAIL.
ArcelorMittal had proposed to join hands with Steel Authority of India Ltd (SAIL) earlier this year. It could be looking at partnering SAIL for proposed steel plant at Sindri in Jharkhand. SAIL had earlier said that it may go ahead with the project in a JV format.
Posco had entered into a technical pact with SAIL in 2007 and is also working on opportunities to jointly set up Rs 11,000-crore steel plant with the Indian company for the past one year. SAIL Chairman C S Verma had earlier said that a final deal with Posco could be signed by December.
Both Posco and ArcelorMittal had announced their intent to set up large steel projects in India way back in 2005, but things have hardly moved on the ground owing to land acquisition troubles.
Problems in land acquisition and associated tribal protests have been holding back the big ticket investments in India--like that of Posco and ArcelorMittal.
Faced with inordinate delays in launching its ambitious Rs one lakh crore steel projects in Jharkhand and Orissa, ArcelorMittal had started looking at new opportunities in states like Maharashtra, besides tying up with domestic firm Uttam Galva.
India's per capita steel consumption hovers at around Rs 46 kg as against the global average of 198 kg. SAIL with an annual production capacity of 14 million tonnes at present is in process of enhancing its capabilities to produce 60 million tonnes by 2020.
