The Hindu Business Line : Govt approves merger of MEL with SAIL

Maharashtra Elektrosmelt Ltd (MEL) would be merged with the Steel Authority of India Ltd. This decision was taken in principle at a meeting between the top management of SAIL and MEL, and officials of the Ministry of Steel including the Union Minister for Steel, Mr Ram Vilas Paswan.

"After due deliberations with the management of SAIL and MEL, we have decided to give in-principle approval to the merger of MEL with SAIL," Mr Paswan said.

The Minister is expected to make a formal announcement later this month or early next month when he visits MEL at Chandrapur.

Voicing his approval to the proposed merger, the SAIL Chairman, Mr V.S. Jain, said that a formal clearance of the merger would be sought at the next meeting of the SAIL board on May 25.

Mr Paswan said the issue of the merger of Manganese Ore India Ltd (MOIL) with SAIL would take some more time as the Das Committee, set to examine the merger of PSUs, has recommended that MOIL be allowed to remain an independent entity.

He said SAIL was gradually expanding as a global company. The merger of MEL with SAIL will further broaden its base. Referring to the merger of IISCO with SAIL earlier this year and the impending merger of the Bharat Refractories Ltd with it, he said that all sides stand to gain from the move.

The Minister said companies under the Steel Ministry are taking steps to reduce production costs despite the price rise. Productions are rising all round and there has been a marked growth in profit earning. The country is expected to produce 65 million tonnes of steel by 2011-12, he said.

More Stories on : Mergers & Acquisitions | Steel | Steel Authority of India Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page