The Hindu : Russian decision on IISCO revival soon

Online edition of India's National Newspaper
Thursday, Jun 26, 2003

Business

Business

Russian decision on IISCO revival soon

NEW DELHI JUNE 25. The vexed revival issue of the ailing Indian Iron and Steel Company (IISCO) with the participation of Tazpromexports (TPE) of Russia is once again on the cards.

The Russian Government will take a decision on TPE's participation in the next two months, said Ministry officials.

TPE has again evinced interest in ISSCO after the recent visit of Indian steel delegation to Russia, Ukraine and Finland led by the Union Steel Minister, Braja Kishore Tripathy.

In this context, the TPE's offer, ever since it emerged on the scene some years ago, envisaged utilisation of funds from the rupee-rouble escrow account, related to the bilaterally agreed arrangement for India's repayment of Soviet-era debt.

It has also been decided that the construction work at the Romelt plant of NMDC at Nagarnar of Chhatisgarh with participation of Moscow Institute of Steel and Alloys (MISA) and TPE will be taken up shortly.

The Russian side assured the delegation to settle the outstanding dues of SAIL on account of the adjustment of central rupee account within two months. A techno-economic feasibility report from the Russian side on the joint research project of NALCO for iron extraction from red mud will be ready by July 15.

Mr. Tripathy raised the proposal of setting up facilities for smelting reduction for iron ore, slimes, red mud and chromite using Romelt Reactor.

It was agreed that a demonstration plant at Bhubaneswar would be established and the issue of tie up of funds would be resolved shortly.

The ailing subsidiary of SAIL, IISCO, has on its rolls over 23,000 workers and employees.

IISCO came under the purview of the Board for Industrial and Financial Reconstruction on June 22, 1994.

The Union Government and SAIL pleaded with the BIFR for six more months from February 23, 2002 on the usual plea that possibilities of reviving IISCO by roping in a strategic partner are still being explored.

For the first time since IISCO's reference to it, it asked the Centre to show cause why the ailing steel company should not be wound up. — UNI

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