The world's largest steel maker ArcelorMittal is understood to be jointly working with its domestic partner Uttam Galva for setting up a Rs 15,000 crore steel plant in Maharashtra.
"ArcelorMittal and Uttam Galva are in the process of setting up a 3 million tonnes per annum (MTPA) steel plant at Satarda in Maharashtra. They had recently asked Mecon to prepare the feasibility report for the project," a person in the know of the development told PTI.
However, when contacted Uttam Galva Director (Commercial) Ankit Miglani denied any such move.
"No. At present, the plan (to set up an integrated steel project in Satarda) is on hold. The plant was a priority when ArcelorMittal was not our partner. Now, ArcelorMittal is our partner. We have the raw material (hot rolled coil) security," he said.
ArcelorMittal spokesperson said, "We do not comment on market rumors."
The source said the proposed plant, which can cost the companies Rs 15,000 crore, will come up in two phases of 1.5 MTPA each.
"Both the companies had recently approached consultant Mecon for preparing the Detailed Project Report for the plant. Last week, they asked the PSU to make a feasibility report for the steel plant," the source added. The shareholding of the new venture could not be immediately ascertained.
The Miglani family, the promoters of Uttam Galva, and ArcelorMittal entered into a co promoter agreement last year. At present, ArcelorMittal holds about 34 per cent stake in Uttam Galva and the Miglanis hold about 38 per cent.
Uttam Galva, the country's largest galvanised steel producer in India, already runs a 1 million tonne specialised steel products mill at Khopoli in Raigad district of Maharashtra.
It imports the vital hot rolled coil to make galvanised steel, which is used by automobile customers. Uttam Galva also imports inputs from its partner ArcelorMittal.
Meanwhile, Uttam Galva recently started the trial runs at its 0.5 million tonnes unit in Wardha, Maharashtra. Going forward, it plans to set up a downstream mill there to manufacture long steel products used mainly by infrastructure and construction companies.