The government is not opposed to South Korean steel maker Posco getting a majority stake in its proposed R12,000-crore joint venture with state-run SAIL, Steel Minister Virbhadra Singh said on Monday.
“In principle, we are not opposed to giving a majority stake to Posco in the joint venture, for which we will be seeking a Cabinet approval in a couple of months,” the minister told reporters on the sidelines of a summit here.
SAIL and Posco are in discussions to set up a 1.5 million tonne integrated plant in Bokaro to produce high grade steel from low-grade iron ore and non-coking coal by using Posco’s Finex technology.
“The agreement between the companies is expected in the next two-three months,” Singh added.
Steel ministry officials had earlier said that the plant, to come up on about 2,500 acres of land within the premises of SAIL’s Bokaro Steel unit, could cost about R12,000 crore.