Processing .....please wait.. 
The article has been forwarded.... 
India-China JV to set up steel plant in Karnataka
Bangalore: Two Chinese majors and three Indian partners have formed a joint venture (JV) to set up an iron ore pellet and steel plant in north Karnataka at an estimated cost of 
87.35 billion ($2.2 billion).
The Chinese partners of the JV, christened Xindia Steels, are the $11-billion Xinxing group of companies and China National Metals Products of the $19-billion China Minmetals Corporation. The Indian partners are Manasara Investments, the Kelachandra group and Sigma Minmet.
Sigma Minmet, a joint venture of the U.S. based Sigma Corporation and the Manasara group, is the exclusive marketing arm for Xinxing steel and mining equipment in India.
The Chinese partners will jointly hold 55 percent of the equity, while the Indian partners will hold the remaining 45 percent of the stake, a top Xindia official told IANS here Thursday.
The debt-equity ratio will be 66:33. The JV is expected to break-even by the fourth year of operations.
"The project will be located at Ginigera in Koppal district, about 370 km from Bangalore, spread over 280 acres of land, which we are in the process of acquiring from the Karnataka Industrial Area Development Board (KIADB). We have also applied (to KIADB) for an additional 1,200 acres of land for the integrated steel plant and ductile and pipes unit," Xindia director Gopi Ramanathan said.
Xindia will set up a two-million tonne iron ore pellet plant in the first phase over the next 18 months at a cost of 4 billion and a five-million tonne steel plant in the second phase in 12 months subsequently.
The pellet plant capacity will be expanded to five million tonnes along with the steel plant at a projected cost of 8 billion. The remaining capital (75.4 billion) will be invested in constructing the integrated steel plant.
Xindia is negotiating with mining firms in the iron ore rich belt of the Koppal-Hospet-Bellary region for sourcing the raw materials till the state government allots captive mines. The company has applied to the state mines and geology department for the grant of captive mines in the iron ore belt.
"The entire production in the first three years will be exported to China as 100 percent buyback. From the fourth year, we are allowed to sell the products in the Indian market up to 50 percent of the total production," Ramanathan disclosed.
The plant, which will use the cutting-edge pelletisation and steel-making technology of Xinxing, will meet the growing demand of the Indian steel and sponge iron plants for pellets and downstream products at competitive prices.
"There is a growing demand for steel globally and in India. As per the national steel policy (2005), the projected demand is about 200 million tones per annum by 2020 as against the current demand for 40 million tonnes per annum. Instead of exporting valuable raw materials (iron ore), we will export finished products from India," Ramanathan pointed out.
The integrated project is expected to provide direct and indirect employment to about 16,000 people, including locals, with 700 jobs in the first phase and over 15,000 people in the second phase. As per government norms, the company has to employ 65 percent locals in the integrated plant on completion.
Source: IANS
87.35 billion ($2.2 billion).
The Chinese partners of the JV, christened Xindia Steels, are the $11-billion Xinxing group of companies and China National Metals Products of the $19-billion China Minmetals Corporation. The Indian partners are Manasara Investments, the Kelachandra group and Sigma Minmet.
Sigma Minmet, a joint venture of the U.S. based Sigma Corporation and the Manasara group, is the exclusive marketing arm for Xinxing steel and mining equipment in India.
The Chinese partners will jointly hold 55 percent of the equity, while the Indian partners will hold the remaining 45 percent of the stake, a top Xindia official told IANS here Thursday.
The debt-equity ratio will be 66:33. The JV is expected to break-even by the fourth year of operations.
"The project will be located at Ginigera in Koppal district, about 370 km from Bangalore, spread over 280 acres of land, which we are in the process of acquiring from the Karnataka Industrial Area Development Board (KIADB). We have also applied (to KIADB) for an additional 1,200 acres of land for the integrated steel plant and ductile and pipes unit," Xindia director Gopi Ramanathan said.
Xindia will set up a two-million tonne iron ore pellet plant in the first phase over the next 18 months at a cost of 4 billion and a five-million tonne steel plant in the second phase in 12 months subsequently.
The pellet plant capacity will be expanded to five million tonnes along with the steel plant at a projected cost of 8 billion. The remaining capital (75.4 billion) will be invested in constructing the integrated steel plant.
Xindia is negotiating with mining firms in the iron ore rich belt of the Koppal-Hospet-Bellary region for sourcing the raw materials till the state government allots captive mines. The company has applied to the state mines and geology department for the grant of captive mines in the iron ore belt.
"The entire production in the first three years will be exported to China as 100 percent buyback. From the fourth year, we are allowed to sell the products in the Indian market up to 50 percent of the total production," Ramanathan disclosed.
The plant, which will use the cutting-edge pelletisation and steel-making technology of Xinxing, will meet the growing demand of the Indian steel and sponge iron plants for pellets and downstream products at competitive prices.
"There is a growing demand for steel globally and in India. As per the national steel policy (2005), the projected demand is about 200 million tones per annum by 2020 as against the current demand for 40 million tonnes per annum. Instead of exporting valuable raw materials (iron ore), we will export finished products from India," Ramanathan pointed out.
The integrated project is expected to provide direct and indirect employment to about 16,000 people, including locals, with 700 jobs in the first phase and over 15,000 people in the second phase. As per government norms, the company has to employ 65 percent locals in the integrated plant on completion.
Source: IANS