Steel Authority of India Limited and Nagpur based Manganese Ore India Limited has formed a joint venture to complete ferro alloy plant at Bhiali. The JV is aimed to set up a 0.1 million tonne plant with an investment of 400 crores. The plant is expected to operationalize by 2009 end or early 2010. The ministry of steel has approved the formation of joint venture by SAIL and MOIL.

The ferro material will be used by SAIL as raw material for steel making. The company will require 0.3 million tonne of manganese ore to produce 0.1 million tonne of ferro alloys per year. The company is likely to import manganese ore from South Africa. The country has a shortage of 0.2 million tonnes of ore at present.  The company is also thinking to start mining project in Maharashtra, Orissa and Madhya Pradesh to meet the demand.