ST. PETERSBURG — Steelmaker Severstal said India is the "most attractive" country to develop its business because the nation proved itself to be stable during the global economic crisis.
India also has a growing population and currently "relatively low" steel consumption, Severstal chief executive Alexei Mordashov said Thursday.
Severstal has agreed with India's NMDC to invest $2 billion to build a steel mill in Karnataka with capacity of 2.5 million metric tons of steel a year, Mordashov said. It will use local iron ore and coking coal from Russia, he said.
Mordashov's turbine builder Power Machines is also considering setting up a joint venture in India with a local partner, Mordashov said.