FE reported that Japanese steel maker JFE Steel is keen to pick up a stake in an integrated steel plant planned by JSW Steel in West Bengal's Salboni. In July 2010, JFE had acquired 14.9% in JSW Steel, India's largest steel maker by installed capacity, for INR 4,800 crore. Demand for steel in India is estimated to grow at 13.6% in 2011, almost twice the global average demand.

Mr Seshagiri Rao joint MD and group CFO of JSW Steel said that "We are committed to the West Bengal project. But we are waiting for certain approvals like land, pipeline and water. JFE Steel is very keen to take a stake in the West Bengal project."

Mr Bhavesh Chauhan, an analyst who tracks the metals sector on an independent basis, said that "JFE always wanted to take a stake in the West Bengal project. What we have to see is how much of a stake they take." He added that the move will help bring in better technology and much needed funding to JSW's project.

JSW Steel, which had borrowed heavily to fund its expansion plans and to acquire loss making steel maker Ispat Industries in December 2010, had a debt of INR 12,106 crore as on September 2011.

Mr Sajjan Jindal promoted JSW Steel has tied up with another Japanese company to cater to automotive demand. It formed a joint venture with Marubeni Itochu Steel or MISI to set up a 180,000 tonnes a year plant in Gurgaon in Haryana, an automobile industry hub, by 2013.

When JFE picked up the stake in JSW, Mr Hajime Bada, president and CEO of JFE Steel had said that "JFE, with this agreement, is determined to intensify its relationship with JSW to serve the request of its automotive customers, which are rapidly expanding production, in local procurement of value-added steel products." He added that the agreement will also provide JFE an avenue to look into the future possibilities of development in India.

(Sourced from www.financialexpress.com)