ET reported that state owned Oil and Natural Gas Corp has expressed interest in partnering Rashtriya Ispat Nigam and Bharat Heavy Electricals on a proposed INR 2,000 crore, joint venture seamless tubes manufacturing plant at Vizag and talks are on between the parties.

Mr AP Choudhary CMD of RINL told PTI that "While BHEL has already agreed to join as a joint venture partner in the proposed seamless tube mill at Vizag, ONGC has also evinced interest and discussions are in progress.”

Mr Choudhary favored the inclusion of ONGC in the venture and indicated that there should not be any resistance from BHEL to bring the oil major on board, since seamless tubes find application in a wide area, including the energy, oil and gas and water sectors.

He said that "It will be win-win for all of us.”

While he stated that the shareholding pattern of the proposed venture is yet to be finalized, he asserted the majority stake would be held by RINL, as the proposed facility would be housed inside RINL's Vizag facility.”

Mr Choudhary said that "The mill will have 0.4 million tonnes per annum seamless tube installed production capacity. Total investment here will be over INR 2,000 crore.”

He added that the joint venture agreement is likely to be signed before the end of the current year and once that is done, tendering for the plant and machinery will follow, adding this might take place before the end of the current fiscal.

(Sourced from ET)