Magnitogorsk Iron and Steel Works, the largest Russian steel maker, has sought the Orissa government's approval for setting up a 10-milllion-tonne integrated steel plant.
MMK chairman Victor Rashnikov recently discussed the broad contours of the plan with the Orissa government. The estimated investment for a 10-million-tonne plant will be over Rs 30,000 crore (Rs 300 billion).
Sources close to the Orissa government said it might consider the proposal. "MMK will soon start preparing a feasibility report for the project. Only after this, the government will consider allotting land and other raw material. The government may allot nearly 5,000 acres of land in the Keonjhar district," they added.
MMK, one of the top 20 global steel companies, has Russia's largest metal producing single-site facility with an annual output of 12 million tonnes.
According to sources, MMK proposes to manufacture a slew of products in the plant, including integrated steel, plates, sheets and auto components. They also said Uttam Galva Steels might join hands with the Russian steel giant for the greenfield project.
Uttam Galva Steels chairman Rajinder K Miglani was present with Rashnikov at the meeting with state government officials.
When contacted, Ankit Miglani, director, Uttam Galva Steels, said, "MMK is evaluating the feasibility of setting up a steel plant in India. It has approached us to become the partner as and when it decides to implement the project."
Industry sources said Uttam Galva Steels had old business ties with MMK. It buys steel from MMK, Russia's only producer of cold-rolled steel. MMK exports almost 60 per cent of its produce to Asia and eastern Europe.
"The relationship with Uttam Galva will come in handy to the Russian giant to have a better understanding of the local market," the sources added.
