SAIL and RINL joins NMDC for the fast track completion of $40 billion worth mega steel plants

NEW DELHI (Scrap Monster): NMDC, a state owned iron ore miner was given the responsibility of putting up the basic infrastructure of the mine, and also the task of land acquisition for the plant which has the capacity of 10 million to 12 million tonnes as the capacity, which is planned to be constructed at Jharkhand, Chhattisgarh, Karnataka, as well as Odisha.

According to a source in the Steel Ministry of India, due to the  slow progress in the task of basic infrastructure construction as well as land acquisition, the government decided on to divide the job between the three companies by including SAIL and RINL.

The steel ministry has asked SAIL to construct and develop the Special Purpose Vehicle (SPV) in Chattisgarh, RINL has been tasked to develop SPV in Odisha, and then NDMC has been assigned to develop SPV at Jharkhand and also in Karnataka. According to the plan, the  three state owned steel companies, will combine together along with the State Industrial Development Corporations, in order to construct the SPVs, which would in turn create the of the proposed ultra mega steel plant.

The plant will need an investment of about 1 billion dollars to create, one million tonnes of steel. The basic idea of developing SPVs for the construction of the basic infrastructure of the mega plant was however rooted from the minds of previous government, which was based on the mega steel plant construction by the two phenomenal companies, Posco and ArcelorMittal