SAIL signs MOU with MOIL

Steel Authority of India Ltd (SAIL) has announced that the Company is signing on June 26, 2007 a Memorandum of Understanding (MOU) with Manganese Ore India Ltd (MOIL) for setting up of a Joint Venture Company (JVC) to produce ferro-manganese and silico-manganese. The Boards of the Company and MOIL have already given in-principle approval to the proposal for setting of the JVC.

MOIL, a public sector Company has large resources of Manganese Ore in India and is capable of providing high value added inputs. The Company decided to go in for a JVC with MOIL to ensure regular and quality supply of Manganese Ore at competitive cost. The proposed JVC will initially supply a projected volume of around 31,000 tonnes of ferro-manganese and 70,000 tonnes of silico-manganese, to meet a part of the Company's requirement of these ferro-alloys to produce 24 million tonnes of crude steel by 2010, as apart of the Company's growth plan.

The proposed JVC will produce ferro-alloys through three furnaces to be set up in or around Bhilai. The Company will be incorporated with a debt-equity ratio of 1:1 and 50:50 shareholding by the Company and MOIL.

The stock closed the day at Rs.133.55, up by Rs.1.25 or 0.94%. The stock hit an intraday high of Rs.134.50 and low of Rs.131.70. The total traded quantity was 391566 compared to 2 week average of 981668.

Source : Equity Bulls

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