BUSINESS

Centre gives nod to sell three SAIL plants

The Centre has approved outright sale of state-owned SAIL’s three special steel units, including the Salem and Alloy Steel plants.

In pursuance of the decision, SAIL has now sought advisers, including legal and merchant bankers, to carry out the strategic sale along with transfer of management control in the three steel plants — Alloy Steels Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Plant.

The ‘Maharatna’ PSU is scouting for transaction advisers from professional consulting firms, investment bankers and financial institutions to provide advisory services and manage the disinvestment process.

The transaction adviser will advise SAIL on the modalities and timing of the strategic disinvestment of the three steel plants and prepare a detailed operational scheme to successfully implement the process, indicating tentative timelines for each activity.

The firm will also finalise the process of strategic sale as to whether it will be done through bidding or auction and assist SAIL in fixing the range of the fair reserve price, considering the valuation of the divesting plants.

The strategic sale of these three units is likely to happen only in the next financial year, beginning April.

The government has budgeted to raise Rs. 15,000 crore from strategic disinvestment in 2017-18.

The Centre currently holds 75% stake in SAIL, which is the largest steel producer in India.

Recommended for you