The Hindu Business Line : SAIL plans to take over ailing Steel Complex

New Delhi, Dec. 12 State-owned steel major Steel Authority of India Ltd (SAIL) is looking at taking over the ailing Steel Complex Ltd (SCL), which is owned by the Kerala Government.

“Officials from the Kerala Government met the Union Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, requesting him to help in the revival of the unit. The Minister assured them that the project with the assistance of SAIL would be implemented in three stages,” an official in the Steel Ministry told Business Line.

Improved production

The official also said that SAIL has already conducted two rounds of discussions with company authorities and the State Government in this regard.

“As per information, engineers of SAIL have visited the plant and looked into the matter. They have also suggested ways and means for the production to be improved,” he added.

According the estimates, SCL’s production capacity has been enhanced to 25,000 tonnes from around 18,000 tonnes earlier.

SCL currently produces steel billets, which are used by rolling mills to make iron bars used in construction. “If the takeover materialises then we expect SAIL to invest in SCL as well the ancillary units,” the official said.

When contacted, an official from SAIL confirmed the development but said that it was too early to comment on the sort of investments that would be necessary for the revival of SCL.

SAIL is also understood to have firmed up plans to set up a rolling mill and is currently working on the project report.

The shares of SAIL on Wednesday were up 3.85 per cent to close at Rs 287.55 on the Bombay Stock Exchange.

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