Government Targeting to Divest SAIL SSP & VISL by March 2021
Mint recently reported that India’s finance ministry is hopeful of completing the strategic sale of SAIL’s Salem Steel Plant and Bhadravati based Visvesvaraya
Mint recently reported that India’s finance ministry is hopeful of completing the strategic sale of SAIL’s Salem Steel Plant and Bhadravati based Visvesvaraya Iron and Steel Plant in this fiscal through March. An official said “Alternative mechanism for disinvestment headed by home minister Mr Amit Shah has cleared the business transfer agreement of SAIL’s plants that will be shared with qualified bidders and their comments will be sought. In this case, the financial bids may come before March, but security clearance, competition commission clearance may take some time depending on who qualifies. We are still hopeful of the transaction getting completed in FY21. We are keeping our fingers crossed. The sale proceeds will instead go directly to the state-run steelmaker as the two plants are its subsidiaries.”
Department of Investment and Public Asset Management is handling the disinvestment process and had sought expressions of interest in the sale of the two plants on 4 July 2019. It had appointed SBI Capital Markets Ltd as the transaction adviser following an in-principle approval from the Cabinet Committee on Economic Affairs for strategic disinvestment of several state-run companies.