NEW DELHI: Jindal Saw shareholders have approved the proposal for entering into contract worth up to Rs 10,000 crore with group firm JSW Steel, from which it purchases raw material.
The proposal for related party transaction was cleared by its shareholders through a special resolution last month.
Jindal Saw is a part of the USD 18 billion O P Jindal Group and makes large diameter submerged as well as spiral pipes. JSW Steel, also a part the group, is country's leading integrated steel producer with a capacity of 14.3 MTPA.
The approval is for Jindal Saw to "enter into a contract(s)/arrangement(s)/transaction(s) with JSW Steel, a related party...up to a maximum amount of Rs 10,000 crore from the financial year 2014-15 and onwards," Jindal Saw said in a regulatory filing.
The transactions will be at all times "on arm's length basis and in the ordinary course of the company's business", the filing said.
The Board of Directors of the company has been authorised to settle any doubts in this regard, it added.
Earlier the extraordinary general meeting of the members of Jindal Saw was held on March 23.
The shares of Jindal Saw closed at Rs 66.15, down 1.19 per cent, on the BSE.