JOIN USTwo state-owned steel makers — Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) — have evinced interest to be NMDC's joint venture partner in the Rs 15,525-crore proposed steel project at Nagarnar in Chhattisgarh.
NMDC, which had invited Expression of Interests (EoI) in February from global steel biggies to become a joint venture partner for its 3 mtpa project, is likely to invite soon a fresh round of EoI, dangling the carrot of more stake or even management control.
NMDC had offered to give 49 per cent equity in the project to its prospective partner, not management control.
Industry officials said NMDC should have learnt from previous experiences between SAIL-Posco and NMDC-Severstal, where even 50 per cent equity offer did not break the ice.
"We got just two applications in response to the EoI that we had issued in February. We want wider participation for the steel project from across the world. Hence, we will issue a fresh EoI and hike equity offer," an NMDC official said.
The tepid response to the proposed project has surprised officials since NMDC's Nagarnar project is free from the hazards of land acquisition.
"SAIL and RINL had evinced interests for being NMDC's JV partner for Nagarnar steel project. NMDC Board will meet in first week of May and decide on this. The future of the project is not uncertain. It will happen, whether any foreign companies come forward or not," the source said.