SAIL to be equity partner in Odisha mega steel project.

The ultra mega steel project proposed in Odisha has got a fresh twist with the Union ministry of steel proposing maharatna firm Steel Authority of India Ltd. (SAIL) to be the equity partner in the project.

If the Centre's latest move falls in place, SAIL is most likely to replace its smaller rival Rashtriya Ispat Nigam Ltd (RINL) as the equity partner.

'Since RINL is not showing the desired interest in the ultra mega steel project, the steel ministry has proposed that SAIL should be the equity partner. The ministry has emphasised that the mega steel project be implemented in Odisha as per the Chattisgarh model where SAIL and National Mineral Development Corporation (NMDC) hold equity in the special purpose vehicle (SPV) to be formed for the project', said a government official. The proposed ultra mega steel project (UMSP) in the state has not made the desired headway and has instead, been dogged by frequent changes proposed in the equity structure of SPV.

The UMSP was originally supposed to be developed as 50:50 joint venture between NMDC and state run miner Odisha Mining Corporation (OMC). Later, RINL evinced interest to pick up stake in the SPV to be formed for the project. But the lack of consensus between RINL and NMDC on the shareholding pattern pushed the project to delay.

BS