An internal note of the Ministry of Steel reveals that Steel Authority of India Ltd has reportedly agreed to give up non-core land, which is not covered under the divestment process, to the Tamil Nadu government to facilitate divestment of Salem Steel Plant, says Hindu Business Line reportsSAIL will part with 1,600 acres of land at market rate, which is anticipated at ₹ 2,000 crore and this land parcel is to be used by the Tamil Nadu government for its defense corridor and SAIL will be left with 600 acres of non-core land still.According to the ministry’s note, the transaction advisor could not arrange visits of the short-listed bidders due to law and order issues and DIPAM has taken up the matter with the Ministry of Home Affairs and Government of Tamil Nadu.The Union Cabinet had approved the divestment of Salem Steel Plant in October 2016. Bidding documents were issued to short-listed bidders on December 2020. The last date for submission of comments on definitive draft agreements was extended to July 2022, whereas the last date for submission of non-financial bids and financial bids was extended to August 2022.SAIL has appointed SBI Capital Markets as the transaction advisor, Saraf & Partners as the legal advisor, Protocol Insurance Surveyors & Loss Assessors as Asset Valuer and KPMG as the tax-cum-accounting consultant.Salem Steel Plant, a special steel unit, pioneered the supply of wider-width stainless steel sheets and coils in India. The plant can produce stainless steel in the form of coils & sheets, with an installed capacity of 70,000 metric ton per year in a Cold Rolling Mill, and 364,000 metric ton per year in a Hot Rolling Mill. The steel melting shop can produce 180,000 metric ton of slabs per annum.
An internal note of the Ministry of Steel reveals that Steel Authority of India Ltd has reportedly agreed to give up non-core land, which is not covered under the divestment process, to the Tamil Nadu government to facilitate divestment of Salem Steel Plant, says Hindu Business Line reportsSAIL will part with 1,600 acres of land at market rate, which is anticipated at ₹ 2,000 crore and this land parcel is to be used by the Tamil Nadu government for its defense corridor and SAIL will be left with 600 acres of non-core land still.According to the ministry’s note, the transaction advisor could not arrange visits of the short-listed bidders due to law and order issues and DIPAM has taken up the matter with the Ministry of Home Affairs and Government of Tamil Nadu.The Union Cabinet had approved the divestment of Salem Steel Plant in October 2016. Bidding documents were issued to short-listed bidders on December 2020. The last date for submission of comments on definitive draft agreements was extended to July 2022, whereas the last date for submission of non-financial bids and financial bids was extended to August 2022.SAIL has appointed SBI Capital Markets as the transaction advisor, Saraf & Partners as the legal advisor, Protocol Insurance Surveyors & Loss Assessors as Asset Valuer and KPMG as the tax-cum-accounting consultant.Salem Steel Plant, a special steel unit, pioneered the supply of wider-width stainless steel sheets and coils in India. The plant can produce stainless steel in the form of coils & sheets, with an installed capacity of 70,000 metric ton per year in a Cold Rolling Mill, and 364,000 metric ton per year in a Hot Rolling Mill. The steel melting shop can produce 180,000 metric ton of slabs per annum.
