No ‘dis­tress sale’ of three key SAIL sub­sidiaries: Govt

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Gov­ern­ment will not go in for "dis­tress sale" of three SAIL sub­sidiaries – Salem Steel Plant, Visves­varaya Iron and Steel and Chan­dra­pur Ferro-al­loy – and rather look for a man­age­ment that will turn around the units, a top of­fi­cial said.

"None of these plants we will like to put as a dis­tress sale. We will like them to come into profit and... bet­ter man­age­ment," Steel Sec­re­tary Aruna Sharma said.

Ear­lier, the gov­ern­ment had in-prin­ci­ple ap­proved strate­gic dis­in­vest­ment of SAIL'S Bhadrawati, Salem and Dur­ga­pur (al­loy steel plants).

"When I am talk­ing of mak­ing the share of the gov­ern­ment 49 per cent, (it) is only when we get a good man­age­ment... If not, there is no point it will take off on its own," she added.

She fur­ther said that as of now, there is no pro­posal of strate­gic dis­in­vest­ment for more units of SAIL. "It much de­pends on what ex­pe­ri­ence we gain here (from the strate­gic sale of three units of SAIL)," the sec­re­tary said.

"This an­nounce­ment of strate­gic dis­in­vest­ment means a min­i­mum of 51 per cent. So, it all de­pends on ef­fi­ciency and it is sub­ject to many things. It is un­der very very ini­tial stages... Now as guided by Depart­ment of In­vest­ment and Pub­lic As­set Man­age­ment, we will ap­point some­body to do the eval­u­a­tions... There are still a lot of pro­cesses it has to un­dergo," she added.

SAIL had ear­lier said the gov­ern­ment will hold auc­tion to iden­tify strate­gic buy­ers for SAIL sub­sidiaries – Bhadrawati, Salem and Dur­ga­pur.

Tasked by the Prime Min­is­ter's Of­fice with ex­am­in­ing the vi­a­bil­ity of ail­ing state-owned com­pa­nies, Niti Aayog had ear­lier sub­mit­ted two sep­a­rate lists of sick and loss-mak­ing PSUS: one com­pris­ing those that can be closed down and the other of those that should be pri­va­tised through strate­gic sale.

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