NMDC, Tata Steel sign MoU on possible alliances
With a perspective to study the prospect of a strategic alliance, NMDC Ltd. and Tata Steel have inked a Memorandum of Understanding (MoU) for acquisition, exploration and development of mines and setting up of integrated steel plants.
Mr. Rana Som, Chairman & Managing Director of NMDC and Mr. H M Nerurkar, Managing Director of Tata Steel signed the MoU.
Mr. Som said the MoU between the two companies is a historic milestone and soon both the companies are going to turn into a joint venture company.
He said at first, the two companies would form a working group to investigate and finalise the areas of cooperation and submit its report to the steering committee. After which a decision would be taken in regards to the formation of a joint venture.
However, the working group would decide about the equity structure and would also depend on the areas that the two companies were going to operate.
Mr. Nerurkar said in the current situation, where the country”s steel policy predicted of doubling the capacity of steel-making over the next decade, an opportunity has arrived for both the companies to work together towards this goal.
He said Tata Steel and NMDC have intended to jointly address mining and steel-making opportunities.
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