SAIL, RINL and MOIL will enter into a three-way joint venture to produce ferro alloys.

Earlier, two separately proposed joint ventures between SAIL-MOIL and MOIL-RINL having virtually been scrapped.

MOIL had inked two separate JV pacts with Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL) to set up two ferro alloy plants with a total outlay of Rs 600 crore. However, all the three companies are in talks to jointly set up the ferro alloy plant along with a captive power plant.

As per the JV between SAIL and MOIL, the ferro alloys project will be set up in Chhattisgarh with an annual capacity of one lakh tpa, at a cost of Rs 400 crore.

On the other side, as per the JV agreement between RINL and MOIL, the project worth Rs 200 crore, will come up in Andhra Pradesh with 50,000 tpa capacity.

While power shortage was the primary reason for scrapping the RINL-MOIL JV, till recently, SAIL maintained that the proposed venture with MOIL was not yet scrapped.

Meanwhile, a committee has been set up comprising members from all the three state-run firms under the Steel Ministry, to work on the shareholding pattern, proposed capacity and likely investment for the three-way venture.