Vedanta Resources today said that it is in talks with three steel makers in Europe, Japan and India, in its search for a partner for its venture into steel.
The London-based group's Chairman Anil Agarwal said Vedanta is willing to offer its prospective partner a majority stake. It expects to decide on the partner in three months.
Vedanta group company Sesa Goa is into iron ore processing. The group is looking for a joint venture partner who will bring in technology to make steel. Agarwal, however, would not name the companies Vedanta is in talks with for the JV.
The proposed steel plant, which will have a capacity of 5 million tonnes annually, will come up in Orissa's Keonjhar district with an investment of Rs 7,000 crore-Rs 8,000 crore.
Agarwal was in Karaikudi, 550 km south of Chennai, to lay the foundation stone for an aluminium fluoride plant being set up here by Sterlite Industries, another group company.
Vedanta is mainly involved in making copper, aluminium and zinc and the Orissa project will mark its foray into the ferrous metal.
Plans to buy out Balco, Hind Zinc
Agarwal said the group has submitted a proposal to acquire the balance government stake in Balco and Hindustan Zinc Ltd.
The Union government owns 49 per cent in Balco and 27 per cent in Hindustan Zinc and if the proposal is successful, it will cost Vedanta about Rs 10,000 crore.
In June last year, Vedanta raised Rs 9,000 crore in the US through American depositary receipts (ADRs).
Elaborating on the group's investment plans in India, Agarwal said Vedanta Resources plans to invest $8 billion (about Rs 32,000 crore), of which $3.5 billion (Rs 14,000 crore) has already been committed and the balance investment will be made over the next two to three years. These investments do not include its proposed foray into steel.
Lines up $8 billion for India
An estimated 70 per cent of this $8 billion investment will be made in aluminium and power, and the rest in zinc and copper. The group aims to expand its capacity for the three non-ferrous metals to a million tonnes each.
The group also plans to set up power generation capacity of 10,000 mw. Most of the power generated will be sold. It already has an estimated 3,000 mw of captive power capacity at various units.
Vedanta also plans to expand Sesa Goa's ship-building business, and establish a presence in port handling and logistics with an investment of $200-300 million.
