Public sector steel major, SAIL is looking at 100 per cent stake sale in Salem Steel Plant (SSP) and is looking for a potential buyer.The Salem unit had already been modernized and expanded at an investment of Rs. 2,371 crore to produce 180,000 tonnes per annum of stainless steel slabs.It has added a steel melting shop, a single strand slab caster and roll grinder for hot rolling mill, and a cold rolling mill complex, which was a part of its expansion programme.
SAIL, which had issued a global invitation for expressions of interest (EoI) on July 4 were opened on September 10. The bidder should have prior experience in core sectors and must bring in technology, efficiency and investment into the unit, as per the qualification criteria. This may lead to the creation of more jobs and consequent prosperity in the region.
In October 2016, the Cabinet Committee on Economic Affairs ( CCEA) had given its in-principle nod for the strategic disinvestment of SAIL’s Salem Steel Plant, Salem,Alloy Steels Plant, Durgapur and Visvesvaraya Iron and Steel Plant, Bhadravati.
Following this, in February 2017, the SAIL board had approved a stake sale plan forall the three units.
The Tamil Nadu government, political parties in the State and unions had been opposing the proposed privatisation.
Earlier in July, Tamil Nadu Chief Minister Edappadi K Palaniswami told the Assembly that his party (AIADMK), along with others, would exert pressure on the Prime Minister and the Steel Minister to drop the privatization plan.
The net loss before tax for Salem Steel Plant came down significantly from Rs. 461 crore in FY16 to 211 crores to Rs. 259 crore in FY19 and its revenue grew to Rs. 1,693 crore in FY19 as compared to Rs. 1,350 crore in the last year, according to SAIL’s annual reports.
