State-owned Steel Authority of India Ltd. (SAIL) has signed a Memorandum of Understanding (MoU) with Indonesia-based PT Krakatau Steel to explore the establishment of a joint venture for manufacturing stainless steel slabs, a move aimed at meeting the rising demand for stainless steel in India.
The MoU was announced during the high-level engagements between India and Indonesia held as part of Prime Minister Narendra Modi’s visit to Indonesia from July 6 to 8, underscoring the growing industrial cooperation between the two nations.
The proposed collaboration combines Indonesia’s abundant nickel reserves—one of the world’s largest sources of the critical raw material required for stainless steel production—with SAIL’s more than five decades of expertise in steelmaking, project execution, and operating integrated steel plants.
According to SAIL, the agreement represents a significant milestone in strengthening the manufacturing partnership between India and Indonesia and aligns with the shared objective of developing resilient and sustainable industrial value chains.
The company said key aspects of the proposed joint venture, including production capacity, investment structure, technology configuration, and implementation timeline, will be finalized after completing feasibility studies and obtaining the necessary approvals from both companies and their respective governments.
Commenting on the development, SAIL Chairman and Managing Director Ashok Kumar Panda said the collaboration has the potential to create long-term value for both companies while reinforcing the economic partnership between India and Indonesia.
“As demand for stainless steel continues to grow across sectors such as infrastructure, mobility, renewable energy and manufacturing, access to reliable raw materials and strategic partnerships becomes increasingly important. We believe this collaboration with PT Krakatau Steel has the potential to create long-term value for both companies while strengthening the economic partnership between India and Indonesia,” Panda said.
He added that the initiative is part of SAIL’s broader strategy to expand its presence in the stainless steel value chain, enhance raw material security, build resilient supply chains, and support India’s vision of becoming a globally competitive manufacturing hub under the Atmanirbhar Bharat initiative.