NEW DELHI: Posco and Severstal, the South Korean and Russian steel majors, cannot have majority stakes in their proposed joint ventures with state-run SAIL and NMDC respectively, as announced by the Steel Ministry.
As per the Steel Minister Beni Prasad Verma, talks are underway and there are problems in regards to the shareholding.
However, he declined to give a specific time-line as to when the deals are likely to be sealed. This can only be finalised only when Posco and Severstal agree to give our companies 51 per cent stakes in both the joint ventures.
SAIL had inked a memorandum of understanding (MoU) with South Korea's Posco to form a joint venture company at Bokaro in Jharkhand for setting up a three-million tonne per annum steel-making unit last year with a Rs 16,000 crore investment.
NMDC had signed a deal with Russia's second largest steel maker Severstal in late 2010 for a three mtpa plant initially in Karnataka envisaging around Rs 20,000 crore investment.