As one of the pillar industries of the Indian economy, thesteel industry accounts for 2% of India's GDP. India is also the world's thirdlargest steel producer.
On September 14, under the impetus of the Prime Minister'sOffice (PMO), the Indian steel sector began negotiations with major steelcompanies in Japan and South Korea to discuss the Rashtriya Ispat Nigam (RINL)steel mill in India and the Korean and Japanese companies in Visakha. Thespecific case of a 5 million-ton steel mill in the joint venture of the city ofParthenan.
The proposed joint venture, with an investment ofapproximately Rs. 300 crore, will produce high-end steel for automobiles andother industries, with the aim of replacing imported steel.
It is reported that the Indian Ministry of Steel promised toguarantee the establishment of a joint venture steel mill to obtain a stablesupply of iron ore, and to build a steel plant. The land will also be the landof the RINL company.
If the joint venture is put into construction, it willgreatly increase the steelmaking capacity in India. The Indian government plansto increase its steelmaking capacity from the current 134 million tons to 300million tons in the 2030-2013 fiscal year.