New Delhi, Feb.16
THE Indian Iron and Steel Company (IISCO) has been amalgamated with the parent company Steel Authority of India Ltd (SAIL) with effect from Thursday.
The Ministry of Company Affairs (MCA) issued the final order on Wednesday, approving the amalgamation scheme. As per the order, the appointed date of amalgamation is April 1, 2005. The matter of amalgamation of IISCO with SAIL was referred to the MCA, following the Government approval in June last year and the subsequent clearance given by the Board for Industrial and Financial Reconstruction to the Ministry of Steel.
The consent of SAIL's shareholders was taken at an extraordinary general meeting held in New Delhi in November last year. With the above merger, SAIL will have one more integrated steel plant under its control, taking the total figure to five. Keeping the merger in view, an expansion and modernisation plan has already been finalised. It envisages an investment of around Rs 8,000 crore for the technological upgradation of IISCO to increase its annual hot metal production capacity to 2.5 million tonnes (mt) by 2011-12 from the present level of 0.85 mt.Commenting on the merger, the SAIL Chairman, Mr V. S. Jain, said, "The trend in the industry the world over has been towards merger and consolidation, leading to the creation of greater value for stakeholders."