SAIL and ArcelorMittal also signed a pact to explore the possibility of setting up an automotive steel manufacturing plant under a 50-50 joint venture in the country wherein SAIL would be supplying raw material from its Rourkela steel plant. This is pay off a plan drawn by SAIL to improve its top line. The proposed JV will construct a state-of-the-art cold rolling mill with a capacity of about 1.5 million tonnes per annum (MTPA) and other downstream finishing facilities in India, aimed to offer technologically advanced steel products to India’s rapidly growing automotive sector.
India’s largest PSU steel maker SAIL (Steel Authority of India) had also entered into JVs (joint ventures) in different areas, namely power generation, rail wagon manufacturing, slag cement production with various other companies. Some of the joint ventures include NTPC-SAIL Power Co Ltd, Bokaro Power Supply Co Pvt Ltd and International Coal Ventures Private Limited (ICVL).
According to sources, some of the non-operating JVs include UEC Sail Information Technology Ltd and Romelt SAIL (India) Ltd.
Recently, SAIL has announced to exit some of its JVs that are either non-operational or non-performing. “SAIL has initiated actions for closure/exit from certain joint venture (JV) companies which are either non-operational or non-performing,” Steel Authority of India Ltd (SAIL) said in its annual report 2017-18. The report said, SAIL is also exploring options to monetize its investments in certain JV companies.