However, Chairman of SAIL, NMDC positive about development

Differences on shareholding issue continue to come in the way of formation of two steel-making joint ventures--SAIL-Posco and NMDC-Severstal--involving over Rs 35,000 crore investment, as both the overseas firms are insisting on owning majority stakes in them. Though differences between the two domestic firms and the overseas entities over the issue has been on for quite some time now without signs of an early settlement, C S Verma, Chairman of both SAIL and NMDC, sees light at the end of the tunnel.

Iron ore miner NMDC may announce a revision in the July-August contract price for the key input for steel-making at its board meeting scheduled on August 21.

“The NMDC board at its meeting on August 13 did not take a call on iron ore price. It is meeting on August 21 again to consider the matter. It may revise the price,” a source close to the development said. On increased demand and lower availability, NMDC had raised the price of the raw material by eight-10 per cent for the April-June contract price.

The recent decision of the Supreme Court capping iron ore production at 30 million tonnes per annum in Karnataka has not deterred iron and steel companies from expanding their capacities. Both the existing and new steel companies have lined up expansion plans as well as set up greenfield plants in the ore-starved Karnataka state.

While newcomers like Arcelor Mittal and Posco are still awaiting allotment of captive mining leases before commencing work on their respective six million tonne per annum greenfield steel plants in the state, existing manufacturers like JSW Steel Ltd, BMM Ispat Ltd and Kalyani Steel have planned expansion.