Economic Times reported that the promoters of Orissa Sponge Iron and Steel on Wednesday decried attempts by some steelmakers to take over the management of the company and said their choice of a partner to revive the loss-making firm is still Monnet Ispat.

Mr PK Mohanty MD of Orissa Sponge Iron and Steel told ET “We were looking for a strategic partner who was not very large and had similar outlook and exposure to sponge iron and steel industry. Many large houses had contacted us and held discussions. We chose Monnet Ispat and Energy as the appropriate strategic partner rather than one of the larger business houses such as Bhushans, Essar, Jindals etc.”

He added “We have already signed the agreement with Monnet. There is no question of further dilution of our stake in the company.”

Mr Mohanty also said “We were all along looking for a strategic partner. We have very good relations with Bhushans, who are the leaders of the coal block allotted to us. They offered to buy us out but we were not keen at all to part with the company which we built over the years. They are, however, welcome to invest in the company.”

OSISL, which was previously known as Orissa Sponge Iron Ltd, was incorporated nearly 30 years ago in April 1979, as one of the first joint sector enterprise between Industrial Promotion and Investment Corporation of Orissa Ltd and Torsteel Research Foundation in India, established by Dr Mohanty. It commissioned the first coal based sponge iron plant in the country in 1984 at Palaspanga in Keonjhar district.

OSIL had signed an MoU with the Odisha government to set up a one million tonne per annum steelmaking capacity and have been looking for a strategic partner since 2006. It received iron ore mines lease allocation from the central government in 2002, and the state government's approval in 2004. By 2007, it got all the statutory clearances to open up the iron ore mines, except forest clearance, which is in advanced stage.

Source - Economic Times

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