Indian state-owned steelmaker Steel Authority of India Limited (SAIL) and Japanese steel producer Kobe Steel have established a 50-50 joint venture company called SAIL-KOBE Iron India Private Limited in Durgapur in West Bengal.

The new iron making plant, which will produce 500,000 tonnes of iron nuggets per year using the Iron Making Technology Mark-3 (ITmk3) developed by Kobe Steel, will use iron ore from SAIL's mines.

Construction of the plant is expected to start in 2013 and operations are scheduled to begin in 2015.

The companies announced in March they would carry out a detailed feasibility study for the planned joint venture.