The Ministry of Steel, Government of India is facilitating development of Greenfield Steel Projects by setting up Special Purpose Vehicles (SPVs) in Joint Ventures between PSUs of the Ministry and State PSUs.

An MoU for setting up of Steel SPVs in Chhattisgarh was signed on 09.05.2015 by the Ministry of Steel, Government of India, SAIL and NMDC Ltd. with Chhattisgarh State Government.

However, formation of joint venture industries is a commercial decision and new joint ventures industries are started by Steel Authority of India Limited (SAIL) with the approval of its Board in accordance with Department of Public Enterprises (DPE) guidelines in this regard after conducting due diligence and establishing the technical and financial viability of the project.

SAIL is not unilaterally withdrawing from any MoU which it has signed.

MoUs are record of broad understanding between the parties for a joint association and may fructify into specific agreements as and when agreed to by the parties.

An MoU was signed between SAIL, Kerala State Industrial Development Corporation Limited (KSIDC) and Kerala Minerals and Metals Limited (KMML) in 2013 for jointly exploring possibilities of setting up a Titanium Sponge and Metal Complex at Chavara, Kollam in Kerala.

The Minister of State in the Ministry of Steel and Mines Shri Vishnu Deo Sai provided this information in reply to a question in Lok Sabha today.

Joint venture formation requires board approval under DPE guidelines and due diligence; MoUs remain non binding understandings. Formation of joint venture industries by SAIL is a commercial decision requiring SAIL Board approval under Department of Public Enterprises guidelines after due diligence and technical and financial viability assessment; MoUs record broad, non binding understandings that may lead to specific agreements only if parties so agree, and SAIL does not unilaterally withdraw from signed MoUs.