NMDC is planning to independently set up a steel plant in Karnataka since its JV project with Russia's OAO Severstal has fallen through.
Both the companies signed an agreement in December 2010 to set up a unit at Bellary/Hospet in Karnataka to produce two million tpa steel with an investment of Rs 16,000 crore.
However, both couldn't agree on a shareholding structure as NMDC was unwilling to give a majority stake to Severstal. Also, NMDC couldn't promise securing an iron-ore mine from the government to produce raw material for the proposed plant. Hence, the company has decided to go alone with the project.
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