The state-run company floats a global tender, inviting bids from potential partners
Steel Authority of India (SAIL) plans to set up a 1.2 million tonnes per
annum (mtpa) cold rolling mill at its Rourkela Steel Plant (RSP), which
may entail an investment of around Rs. 5,000 crore, through a joint
venture.
The state-run company, which is ramping up its steel making capacity to
24 mtpa from 14 mtpa now, has already floated a global tender, inviting
bids from potential partners. The proposal is to install a 1.2 mtpa cold
rolling mill complex at RSP though the venture to cater to the auto
sector, a source said. The “strategic” partner should have experience
and expertise in the field, he added.
“SAIL believes that there is a huge potential for such sheets in India
and the demand is only going to go northward in the coming days.
However, it does not have the necessary technology and the plan is thus
to rope in a partner which has the necessary technology for producing
such sheets,” the sources said. The source said that the SAIL and its
proposed joint venture partner might have to invest around Rs. 5,000
crore for the cold rolling mill.
“It would be divided among the two in the ratio of their stake holding in the proposed venture,” he said.
The domestic auto sector, which has been running through a prolonged bad
patch, has started looking up in the last two months. Industry experts
opined that Indian automotive market has the potential to grow
multi-fold in the coming years.
“SAIL knows it and that is why in order to produce high quality rolled
sheets for the auto sector, it is proposed to install a new 1.2 mtpa
cold rolling mill complex at Rourkela Steel Plant in strategic
partnership with an established global player,” he said.
The company’s Board Sub-Committee on strategic alliance and joint venture has also approved the proposal, he said.
