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NEW DELHI, Jan 1 Asia Pulse - Tata Steel (BSE:500470) and state-run SAIL (BSE:500113), India's two biggest makers of the alloy, are all set to form a joint venture to mine coal blocks for securing assured coking coal supply to meet their increasing production needs.
"Steel Authority of India Ltd and Tata Steel are likely to sign an agreement to form a joint venture company for mining four coking coal blocks, most-likely in Jharkhand which have reserves of about 500 million tonnes for meeting their production needs," a senior government official said.
He said both companies would seek to put in place a formal JV company through the pact and then begin scouting for more coal blocks. The Board would have representatives from both the companies. The new entity is likely to have an initial capital of Rs 2000 crore (US$507 million) to be shared equally.
In view of the growing steel demand, ...
Source: HighBeam Research, TATA STEEL, SAIL TO FORM INDIAN COAL MINING JV.