Government not opposed to Posco majority stake in SAIL venture

Steel minister Virbhadra Singh today said that government was not opposed to Posco getting a majority stake in the proposed about Rs12,000-crore joint venture between the South Korean giant and state-run SAIL.

"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 in New Delhi.

SAIL and Posco are in talks over setting up a 1.5MT integrated plant in Bokaro for production of high grade steel from low-grade iron ore and non-coking coal with FINEX technology. Finex is the world's largest third largest steel company.

Singh said the agreement between the companies was expected in the next two-three months.

Earlier, steel ministry officials had said the plant would come up on 2,500 acres of land within the premises of SAIL Bokaro Steel unit and would cost about Rs12,000 crore.

Inaugurating a four day International Federation of Consulting Engineers (FIDIC 2010) seminar in New Delhi today, Singh said, ''The present steel production in the country is not matching with the current consumer demand. The only way to match the production is to upgrade the existing and newer eco-friendly technologies at the same time maintaining highest standards.