The MOIL – SAIL and the MOIL – RINL joint ventures for the Ferro alloy manufacturing plants are likely to merge into three way partnership of SAIL – MOIL – RINL.
SAIL is planning to get into a partnership with RINL-MOIL joint venture (JV) as third member for manufacturing Ferro alloy. Its earlier plan of opening a separate unit with MOIL is unlikely to get fulfilled.
MOIL, a state-run Manganese Ore producer had earlier linked two separate JV pacts with SAIL and RINL for setting up two Ferro alloy plants. It had estimated a budget of around INR 6 billion for the two projects. The decision then led to a 3-way venture instead of going for two separate entities.
According to C S Verma, Chairman of SAIL, their plan for JV with MOIL has not scraped yet. Although they are in discussions to explore whether a three way partnership for manufacturing Ferro alloys could be formed.
The JV between SAIL and MOIL was planned to set in Chhattisgarh. Their estimated budget was about INR 4 billion. The plant was expected to have an annual capacity of 0.1 MnT pa. The project had received an environmental clearance from the government.
With this new partnership, there is a plan to change the original location of the plant from Vizianagram to Vizag. The project was a plan of the RINL-MOIL JV with estimated investments of about INR 2 billion, for manufacturing a 50,000 MT of Ferro alloys.
MOIL was to supply the raw for its JV with SAIL and RINL. It had also proposed for a 50% ownership in stake with the two JV. However, it is yet not finalized as to where the three-way JV would set up. Also, the decisions on shareholding patterns of the partnership and the total annual capacity of the plant are due.