Tata Steel, the world's sixth-largest steelmaker by capacity, and public-sector MMTC have entered into an agreement to set up a joint venture to acquire, develop, operate mines and process minerals and metals.

Under the arrangement, Tata Steel would hold 74 per cent stake in the proposed JV, while the balance 26 per cent will be held by MMTC.

It should be noted that steel production in India is projected to grow to over 120 million tonnes by the year 2015. Therefore, to fulfill raw material requirement of increasing steel demand and other mineral based industries, MMTC and Tata Steel have agreed to execute the agreement.

Tata Steel Limited and its subsidiaries engage in the production and sale of steel products worldwide. While, MMTC Limited operates as a trading company primarily in India.

The deal was today signed between Tata Steel's Managing Director H M Nerurkar and Sanjiv Batra, MMTC Chairman and Managing Director.