JSW, JFE Holdings in talks on equity sharing

KOLKATA: JSW Steel is in talks with Japanese firm JJFE Holdings on equity sharing arrangement of JSW Bengal Steel, which is setting up a 10-million tonne steel plant in West Bengal.

"Details about JFE's equity participation in JSW Bengal Steel were being worked out now," a source close to the development told media. The equity participation and shareholding pattern would be finalised soon, he said.

Recently, JSW Steel and JFE Holdings, Japan's second largest steel company, had signed a collaborative agreement for setting up the West Bengal plant and to manufacture auto grade steel.

The source said financial closure was expected to be achieved during the current financial year for the steel plant and work would resume next fiscal. Work on the plant had stopped as the company was unable to access bank finance for debt funding.

"Now with the equity partner JFE coming, funding of the project will become easy." the source said.