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India Approves Disinvestment of SAIL Three Units

New Delhi (ABC Live):The Government has accorded ‘in-principle’ approval for strategic disinvestment of only three units of Steel Authority of India Limited (SAIL) i.e. Visveswaraya Iron and Steel Plant (VISP), Bhadravati, Salem Steel Plant (SSP), Tamil Nadu and Alloy Steel Plant (ASP), Durgapur.

These three units of SAIL have been consistently making losses.  The entire process of the strategic disinvestment would be carried out with the help of a Transaction Adviser (TA), a Legal Adviser (LA) and an Asset Valuer (AV).  The Request for Proposal (RFP) for appointment of TA, LA and AV have been uploaded on SAIL website.

Alloy Steel Plant (ASP), Durgapur has been consistently making losses for last 5 years. Despite investment of around Rs.400 crores, VISP is making losses for last 10 years. Similarly, despite investment of around Rs.2200 crore under modernisation and expansion, SSP is making losses for last 5 years.

The plant-wise financial performance of SAIL during last five years are as under:-

 (Rs. in crore)

Plant /Unit 2011-12 2012-13 2013-14 2014-15 2015-16
Bhilai Steel Plant (BSP) 2715 2048 2085 2232 405
Durgapur Steel Plant (DSP) 503 553 416 506 -527
Rourkela Steel Plant (RSP) 646 363 212 232 -2524
Bokaro Steel Plant (BSL) 703 308 202 451 -2203
IISCO Steel Plant (ISP) -411 -159 -653 -1072 -1939
Alloy Steel Plant  (ASP) -53 -120 -93 -134 -83
Salem Steel Plant (SSP) -155 -420 -376 -355 -466
Visveswaraya Iron & Steel Plant (VISP) -131 -117 -123 -97 -116
SAIL Refractory Unit (SRU) 11 10 3 7 21
Chandrapur Ferro Alloy Plant (CFP) 10 -39 -78 -45 -78
Raw Material Division/Central Units 1313 813 1628 634 310
SAIL Profit (+)/Loss (-) Before Tax 5151 3241 3225 2359 -7198
Tax 1608 1070 608 266 3061
SAIL Profit (+)/Loss (-) After Tax 3543 2170 2616 2093 -4137

A major modernisation and expansion programme has been carried out simultaneously at all the five major plants viz. Bhilai, Bokaro, Rourkela, Durgapur & Burnpur and special steel plant at Salem. The Expansion Plan, besides capacity enhancement from 12.8 Mtpa to 21.4 Mtpa of crude steel, adequately addresses the need of SAIL Plants towards eliminating technological obsolescence leading to improvement in operational efficiency.  Under the Modernization & Expansion, SAIL has installed latest state-of-the-art technologies like 7m tall Coke Oven Batteries with coke dry quenching, high volume (more than 4000 m3) Blast Furnaces with Top Pressure Recovery turbines, auxiliary fuel injection & Cast House slag granulation plants, Steel Melting Shops with latest steel making, refining and casting technology and state-of-the-art rolling mills viz. coupled Pickling and Tandem mill for cold rolled products, Universal Rail Mill for longer rails (upto 260 m), 4.3m wide Plate Mill etc. The cumulative expenditure incurred till February, 2017 is Rs. 64,986 crore towards Modernisation & Expansion, Mines and related sustenance schemes.

This information was provided by the Minister of State in the Ministry of Steel Shri Vishnu Deo Sai in reply to questions in Rajya Sabha today

About Pankaj Gupta

Pankaj Gupta is Charted Accountant by profession reports on Business and Industry for ABC Live since 2006 and remained instrumental in shaping ABC News & Info Services, the parent company owning, the ABC Live.

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