NMDC, the country’s largest iron ore producer and Russian steel maker OJSC Severstal to float a 50:50 joint-venture company that would set up a five million tonne steel plant in Bellary, Karnataka, at a total cost of Rs 9,000 crore.
Initially the plant will have a capacity of two million tonnes per year and will source coal from Russia and iron-ore from near Bellary.
It will produce superior grade steel used in sectors such as automobiles. Construction of the proposed plant is likely to start in 2012 and would be completed within 36 months, the government of India said.
Severstal is one of the top 10 steel makers in the world and has units in Russia, the US and Europe.
NMDC, a government of India enterprise, has already applied for the land from Government of Karnataka and has got in principle agreement for around 2,800 acres.