India's SAIL to set up $3.3 billion steel plant in Indonesia

India's SAIL to set up $3.3 billion steel plant in Indonesia

2011-01-27 09:20:24 GMT+7 (ICT)

NEW DELHI, INDIA (BNO NEWS) -- India's state-run Steel Authority of India Limited (SAIL) will be reportedly setting up a Rs 15,000 crore ($3.3 billion) plant in Indonesia's Central Kalimantan as part of the recent business deals signed by both countries, local media reported.

However, a timeline has not been set up for the 3-million ton per annum plant, the Business Standard reported.

On Tuesday, during Indonesian President Susilo Bambang Yudhoyono's current visit to India, the two countries signed 18 cooperation agreements worth $15.1 billion in several areas, such as mining, infrastructure, and manufacturing. In addition, both countries are looking to increase their bilateral trade and reach $25 billion within the next five years.

Also on Tuesday, SAIL's Chairman, International Coal Ventures Private Limited, C.S. Verma, had previously signed a Memorandum of Understanding (MoU) with Governor of Central Kalimantan, Indonesia, H.E. Agustin Teras Narang for development of mineral deposits, setting up of mineral processing facility, steel plant and required infrastructure in the province of Central Kalimantan.

Since Yudhoyono's 2005 visit to India in which the countries signed a strategic partnership in several areas such as trade and economy, bilateral trade from the two nations has increased from $4 billion to almost $12 billion.

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