ArcelorMittal is in discussions with Indiabulls Group to form a joint venture company for scouting and mining iron ore in Rajasthan and setting up a steel plant.

A person in the know of the development told PTI that "The discussions are on between ArcelorMittal and Indiabulls to form a JV company. ArcelorMittal is pitching for a majority stake in the JV company.”

The source said that "There are indications of iron ore in Rajasthan. It is a mineral rich state. The JV company would seek to locate and develop it. Then, a steel plant would be developed in the state.”

According to the source, the JV would be between an ArcelorMittal subsidiary or an investment arm of the Mittal family and an Indiabulls Group firm.

Mr Aditya Mittal CFO of ArcelorMittal is said to be the brains behind the proposed venture, which aims at tapping the market for steel in North India, where there is no integrated steel plant.

The source added that "Promoters of ArcelorMittal and Indiabulls share a good relationship and the new venture would further their partnership.”

The proposed investment in the JV could not be immediately ascertained.

An ArcelorMittal spokesperson did not revert to a PTI query on the cost of the proposed venture.

(Sourced from ET)