Tata Steel and Jindal Steel & Power Ltd are considering signing joint venture agreements with Indian and international global steel plant equipment makers and technology providers like BHEL, HEC Ltd, Primetals Technologies, Nippon Steel, Paul Wurth to buy domestically manufactured machinery, steel minister Choudhury Birender Singh said on Thursday.
Singh said 20 memoranda of understanding would be signed between Indian equipment makers and foreign technology suppliers to set up or expand local manufacturing base at an estimated investment of worth $5 billion over the next 10-12 years. These include tripartite agreements between Indian and global capital goods firms and steel companies for assured offtake, he said.
The steel ministry is organising a conference on October 23 in Bhubaneswar to facilitate talks between foreign suppliers with Indian manufacturers to float joint ventures in India. The ministry will also consider fiscal and non-fiscal incentives to promote local equipment manufacturing for steel plants.
The foreign manufacturers are from eight countries — Luxembourg, Spain, Italy, Germany, Netherlands, Finland, China and Japan. Well known world renowned steel technology companies such as Paul Wurth, Danieli Corus, SMS, CEC, Metso, Saralle, Acre and Kawasaki, are involved in MoU signing. However, in all 12 countries are being represented at the conference, said a press statement.
ET was the first to report on Sep 27 that global steel plant equipment makers including Primetals Technologies, Nippon Steel, Paul Wurth, Danieli Corus and Thyssenkrupp are expected to hold negotiations in October with domestic firms like Bharat Heavy Electricals Ltd, HEC, Jindal Steel & Power Ltd and Larsen & Toubro to set up manufacturing facilities in India.