Maharatna SAIL has inked a pact with IRCON International, a PSU under the Ministry of Railways for jointly working on rail infrastructure projects in India and overseas.
"It is a general MoU now and we are in the process of identifying definitive projects in India and overseas. Once these are identified, specific joint venture agreements would be signed for each venture by both the companies," Steel Authority of India Ltd (SAIL) Chairman C S Verma told PTI.
Asked about the proposed investment on the projects, Verma said, "Quantum of investments is yet to be decided. It may run in thousands of crores based on requirements in domestic and overseas projects."
Soon after taking charge last year Verma had said that the country's largest steel maker plans to spread its wings over global landspace and would undertake diversification.
Meanwhile, the company said, "The MoU is the first step by SAIL and IRCON towards joining hands for efficient execution of public-public and public-private partnership projects of the Indian Railways, as well as participating in rail infrastructure projects in developing countries."
Indian Railway Construction (IRCON) International Ltd, Managing Director Mohan Tiwari said the PSU is looking forward to the synergies envisaged between the two companies in the MoU translating into a joint venture/special purpose vehicle in the near future, the statement added.
IRCON has already identified a number of projects in which both the companies can participate jointly, he added.
IRCON, which has expertise in development of surface transportation infrastructure, has handled around 300 projects in India and abroad and is presently setting up rail infrastructure in a number of developing countries.
SAIL, the country's largest producer of steel is also the major supplier of railway materials.
The state-run company has already signed an agreement with RITES, another PSU under the aegis of railways for setting up a wagon manufacturing plant in West Bengal with a production capacity of 1,200 wagons per annum.
It has also entered into a JV agreement with state-run Shipping Corporation of India (SCI), which aims to provide shipping-related services to SAIL in importing coking coal for its steel mills.
SAIL is undertaking a Rs 70,000-crore expansion plan to take its capacity to 23 million tonnes (MT) by 2013 from the present 14 MT.
