Indian Express reported that seeking to re build its conflict ravaged infrastructure, Libya is understood to have sought the help of Steel Authority of India Ltd to run one its key steel plants.

The output in the three million tonne plant in Misurata province, owned by the government’s Libyan Iron and Steel Company, has been badly hit by the war, and needs cash infusion and a tech upgrade.

SAIL, which has been scouting for low cost assets worldwide, is learnt to be interested in the proposal to overhaul, operate and maintain the plant. Sources said Libya may extend certain concessions in return.

The steel ministry is reportedly in favor of government to government negotiations before giving SAIL the go ahead. Enthused after winning the bid to explore the Hajigak iron ore mines in Afghanistan, SAIL is expected to begin initial due diligence for Libya after it gets the go ahead.

Mr CS Verma chairman of SAIL declined to confirm the proposal, but said that “SAIL is willing to explore the possibilities of carrying out operations and modernization exercise wherever it gets any opportunity.”

According to sources, the PSU hopes to source natural gas at cheaper rates from either Nigeria or from one of the Gulf States for the Libya plant. It inked an initial pact with Oman Oil Company in November to jointly set up a 3 million tonne integrated gas based steel plant in Oman for an investment of around INR 15,000 crore.

The rising demand for steel in Libya and nearby Nigeria owing to a boom in construction of oil exploration and storage facilities as well as pipelines means that a ready market exists allaying apprehensions of an inventory build up.

(Sourced from www.indianexpress.com)