The government said on Wednesday, January 3, that it has decided not to go ahead with the privatisation of Steel Authority of India Ltd's Salem Steel Plant (SSP). The decision was taken due to a lack of bidder interest.
“Multiple EoIs had been received and bidders were shortlisted. However, due to lack of interest of shortlisted bidders to proceed further with the transaction, Government of India, with the approval of Alternative Mechanism (Empowered Group of Ministers) has decided to annul the current EoI thereby terminating the present transaction,” the Department of Investment and Public Asset Management (DIPAM) said.
In February 2019, the government decided to give a push to its strategic disinvestment plan within the current fiscal year itself by clearing the sale of 100% stake in three special steel-producing units of the steel company, including the Salem Steel and Alloy Steel Plant.
Subsequently, global Expressions of Interest (EoIs) were invited on July 4, 2019, by SAIL.
Earlier, the Narendra Modi government scrapped the strategic sale of SAIL's Visvesvaraya Iron & Steel Plant (VISP) in Karnataka due to insufficient bidder interest.
State-owned Steel Authority of India (SAIL) is the country's largest steel maker. All three units of the steel giant have been making losses. The government has set a target of Rs 65,000 crore from divestment in 2022–23 (April–March), out of which it has already raised Rs 24,544 crore.
(Edited by : Ajay Vaishnav)
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