Kudremukh Iron Ore
Company (KIOCL), the wholly owned export-oriented unit under the ministry of
steel and mines has proposed to set up a steel plant in Karnataka as part of its
forward integration plans at an estimated investment of Rs.9,000-10,000 crore.
KIOCL is looking for a
partner to form a JV in order to set up the steel plant. It plans to take 26 per
cent stake in the new company and invest up to Rs.500 crore.
The company is also
waiting for allotment of a bigger mine in Karnataka for the sustenance of the
company in the long run. Recently, it was granted a mining lease at
Chikkanayakanahalli in Tumkur district by the state, which has an iron ore
deposit of about 10 million tonne and may last for 4-5 years.