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Govt not opposed to Posco holding majority stake in SAIL JV

Steel Minister Virbhadra Singh said the government is not opposed to the Korean steel major holding a majority stake in the Rs 12,000-crore joint venture.

twitter-logoPTI | September 20, 2010 | Updated 14:26 IST

The government is not opposed to Posco getting a majority stake in the proposed Rs 12,000-crore joint venture between the South Korean giant and state-run Steel Authority of India (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 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 the world's third-largest steel company's FINEX Technology.

"The agreement between the companies is expected in the next two-three months," Singh added.

Steel ministry officials had earlier said the plant, to come on about 2,500-acre land within the premises of SAIL's Bokaro Steel unit, could cost about Rs 12,000 crore.

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