Arcelor Mittal and SAIL to Forge Steel in Two Years

BENGALURU: According to government officials, India expects the joint venture between state-owned Steel Authority of India Ltd. (SAIL) and ArcelorMittal  to start producing automotive-grade steel in two years.

SAIL and ArcelorMittal, the world's largest steel producer, joined hands in May last year to expand in one of the world's fastest growing steel markets.

"In another two years it should be in the manufacturing stage, provided we freeze everything within one and a half months and in December we take off," Steel Secretary, Arun Sharma told Reuters.

She said the government was focused on raising the demand for steel in India—whose per-capita consumption of about 60 kg is much lower than the global average. She said that the government was planning to replace concrete with steel in the infrastructure sector.

 The World Steel Association is expecting a growth of 5.4 pct in the demand for steel in India this year, even as countries such as China witness a slow decline.

Not only ArcelorMittal, other major players are also interested in India’s growing market. South Korea’s POSCO is showing keen interest, despite regulatory hurdles and other such difficulties.

Sharma, who moved to the steel ministry just two months back is already on the move and has met POSCO officials, who seem eager to expand in India despite the scrapping of the company's proposed 12 Bn US dollars steel plant in Odisha.

Top Indian steel makers such as Tata Steel Ltd and Jindal Steel & Power Ltd have requested the government to take hard measures to protect their margins from cheap imports from countries such as China and South Korea.

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