SAIL on Wednesday said it has finalised almost all but the shareholding issue with Posco for a Rs 16,000 crore proposed joint venture at Bokaro to produce three million tonne a year auto—grade steel.
“All issues have been frozen already and it is only the equity participation for which we are having a very positive and constructive dialogue,” said Mr C S Verma, Chairman, SAIL.
Shareholding of the proposed venture remained a hurdle for the two since they engaged in negotiations to look at the possibilities of a joint venture more than a year ago.
While Posco is keen on getting the management control of the venture with 51 per cent stake, SAIL wanted to make it an even venture.
“We are having talks on a very positive path. It should happen in due course,” he said.
The venture will use Posco’s patented Finex technology, an environment—friendly iron—making process where iron ore fines are directly used.