The Hindu Business Line : Paswan rules out Salem Steel sale; mulls IISCO merger with SAIL

THE Union Steel Ministry is considering two major decisions for Steel Authority of India Ltd (SAIL). First, it might merge Indian Iron & Steel Co Ltd (IISCO) with SAIL and second, it might drop the idea of privatising Salem Steel Plant (SSP).

Mr Ram Vilas Paswan, Union Steel Minister, announced this at a press conference in the city after visiting the Rourkela Steel Plant (RSP).

According to Mr Paswan, the Union Steel Ministry is closely following the turnaround process of IISCO. It may be noted the Union Government cleared the Rs 341-crore revival package of IISCO last year.

"We have just invested money in IISCO. The company has started registering profits. We will wait for some time and see how it carries on. Then we will consider whether to merge it with SAIL," Mr Paswan told reporters.

In 2003-04, IISCO registered a net profit of Rs 27.9 crore after years of losses. Merging IISCO with SAIL has some logical reasons too. SAIL, which is currently facing iron ore shortage, has shown keen interest in IISCO's iron ore mine at Chiria.

Mr Paswan also announced the pay revision for IISCO employees.

Regarding SSP, he said the unit has started registering profits. Hence, there is no question of privatising a profit-making unit. For years, SAIL management was contemplating selling off SSP. Bids were sought but nothing has been finalised. Jindal Stainless Steel Ltd was reported to be the highest bidder.

Mr Paswan also ruled out the re-introduction of the DEPB (Duty Entitlement Pass Book) rates for steel exports, which was abolished in March, this year. "There is huge demand of steel in the domestic market. We would first meet this demand and then consider for exports," Mr Paswan said.

On the issue of the proposed steel regulatory commission, the Minister stuck to his earlier stand. According to him, this was mooted at a meeting of the National Steel Consumers Council and a consensus was reached after holding discussions with the producers.

"This would be a totally independent body and Union Government would not interfere in its functioning. A final decision would be taken after holding talks with the other ministries," he said.

The SAIL management has worked out a Rs 530-crore modernisation programme for RSP. Out of it, Rs 455-crore worth of programme is already underway and the rest, Rs 75 crore, was sanctioned on Saturday.

Mr Paswan said that an all-round effort would be made to acquire coal mines either domestic or abroad to ride over the coking coal crisis. Joint ventures might be worked out too.

More Stories on : Disinvestment | Mergers & Acquisitions | Steel

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