State-owned BHEL on Friday said it is in talks with SAIL and Vizag Steel to tie up for manufacturing high grade steel, while Korean steel maker Posco may join the proposed joint venture company as a technology partner.
"We intend to partner with SAIL or any other manufacturer like Vizag Steel PLant for CRGO (Cold rolled Grain Oriented) steel," CMD BHEL B P Rao told reporters here.
This is in ideal stage, we want this joint venture mainly to secure supplies for CRGO steel, Rao said, adding that Department of Heavy Industries had convened meetings between BHEL and SAIL for the proposed joint venture. "A third partner may also join the JV firm, SAIL is in talks with Posco for providing technology," Rao added.
On being asked whether the technology partner would be offered any stake in the company, Rao said, "the matter is at a very nascent stage...I cannot comment right now." BHEL's move is aimed at securing supplies of essential raw material like CRGO steel, alloy steels, castings and forgings etc.
"Raw material like alloy steel, CRGO steel are not available here, the demand is there...we want to get the supplies," Rao added.
BHEL, which is engaged in manufacturing power equipment has an orderbook of Rs 1,50,000 crore (Rs 1500 billion).
The company, which currently manufactures equipment that can generate 15,000 MW of electricity, is now in the process of ramping up this capacity to 20,000 MW by March 2012. "We would be a 20,000 MW company by March 2012," he said. BHEL paid Rs 407 crore (Rs 4.07 billion) towards final dividend for the year 2009-10 to the Ministry of Heavy Industries and Public Enterprises.
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