ET reported that the Indian government is considering alternatives, including the buyback route, to disinvestment in steel giant Steel Authority of India Limited as market conditions are not conducive to a public issue.

Under the buyback mode, the government can raise money by selling its equity in the company to the PSU itself.

As part of efforts to achieve the mammoth INR 40,000 crore disinvestment target, the Department of Disinvestment has prepared a list of cash rich PSUs, which can buyback government equity. SAIL is among the companies on the list.

A senior official said that "The government is exploring routes other than FPO for stake sale in SAIL. It will happen only in the January to March quarter adding that it could be through the buyback route, though it has not been finalized.”

Last month, the government had said it will go ahead with its proposal to offload 5% in the firm even as the company had decided against issuing fresh equity. The government holds 85.82% in the 'Maharatna' company.

The company's follow-on public offer has failed to meet deadlines repeatedly since December 2010, due to several reasons such as rising coking coal prices, problems with merchant bankers and adverse market conditions.

(Sourced from ET)