New Delhi: State-run Steel Authority of India will set up a 3 million tonne plant at Central Kalimantan province of Indonesia, entailing a likely investment of up to Rs 15,000 crore.
"SAIL is poised to set up a 3 million tonne per annum (MTPA) steel plant in the province of Central Kalimantan, Indonesia, apart from setting up a mineral processing facility," a source in the know said.
The timeline for the plant will be decided soon, the source said.
Going by the thumb rule of Rs 4,000-5,000 crore investment for one million tonne production capacity, the project is likely to entail up to Rs 15,000 crore expenditure.
Mahratna SAIL has already inked a pact with Indonesian government on January 25 for setting up a steel plant and a mineral processing unit besides development of mineral deposits at Central Kalimantan province of the South-east Asian country.
The memorandum of understanding (MoU) was signed by SAIL Chairman C S Verma and Governor of Central Kalimantan, Indonesia, Agustin Teras Narang, in the presence of Indonesian President Susilo Bambang Yudhoyono.
The MoU envisages setting up of steel plant and mineral processing facility by optimisation of large natural resources of Province of Central Kalimantan, such as coking and thermal coal, iron ore and other minerals for economic development of the Province and meeting the requirement of coal of the promoter companies of ICVL through mutual partnership.
ICVL (International Coal Venture Ltd) is a consortium of five state-run companies -- SAIL, Coal India, NMDC, RINL and NTPC and Verma is also the Chairman of the grouping.
While the Indonesian province will provide ICVL with necessary maps and licenses, ICVL will undertake preliminary survey and exploration activities to find the location and suitability of the quality of minerals and the size of reserves both for domestic use in Indonesia and for exports.
"The MoU marks the beginning of our mutual intent for long-term engagement with each other in the area of economic cooperation between both the institutions," Verma had said while signing the pact.