CS Verma, Chairman of NMDC informed media persons that the Russian company Severstal did not show much interest on the 3 million-tonne-a-year steel plant project and hence the former may implement it as an NMDC-only project.
In 2010, both the firms signed initial agreements for the project and it is not known why Severstal is not interested in the project.
Some reports indicate that owing to “complicated business conditions Severstal decided to suspend its project in India.
Earlier some industry sources hinted that Severstal may not proceed with the project because NMDC was not keen on giving the Russian company a majority stake.
Already, global steel firms ArcelorMittal and South Korea’s POSCO exited two projects, one each in Odisha and Karnataka respectively.
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