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India-Canada row: India-Canada row unlikely to hit Teck deal plan: JSW Steel

The recent souring of diplomatic relations between India and Canada is unlikely to have an impact on JSW Steel’s plan to buy a stake in the metallurgical coal unit of Canadian-based Teck Resources, joint managing director and chief executive officer Jayant Acharya said.

“We have been in discussions with Teck to look at opportunities for some kind of investment together. But that is still work in progress,” he told ET.

“As far as the India-Canada relationship is concerned, I don’t think that that is something which will impact business because these will be on a longer term. And I’m hopeful that the current political situation will improve,” he said. While JSW Steel is currently the largest producer of steel in the country and is also in the midst of further expanding its capacity, it does not have captive coal reserves unlike some of its peers.

Teck Resources has been a consistent supplier of high-grade coking coal to the company over the last ten years, which the company then blends for usage in its blast furnace. The coal is transported to India through capes and ships.

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