The Government has accorded ‘in-principle’ approval for strategic disinvestment of three units of Steel Authority of India Ltd. (SAIL) viz, Visveswaraya Iron and Steel Plant, Bhadravati, Salem Steel Plant, Tamil Nadu and Alloy Steel Plant, Durgapur. These three units of SAIL have been consistently making losses.
The details of the significant steps taken by SAIL to improve the financial performance of the three plants are as under:-
(i) Capital investment to improve the facilities;
(ii) Reduction in consumption level of raw materials;
(iii) Production optimization and product-mix improvement;
(iv) Improvement in techno-economic parameters;
(v) Waste management;
(vi) Strict control on demurrage expenses;
(vii) Reduction in inventory of finished/semi-finished products, stores & spares and raw materials, etc;
(viii) Reduction in logistic cost for transportation of Raw Materials and Finished Steel; and
(ix) Reduction in specific power and water consumption.
The entire process of the strategic disinvestment is to be carried out with the help of Transaction Adviser (TA), Legal Adviser (LA) and Asset Valuer (AV) who would advise on appropriate mechanism of disinvestment.
The Minister of State in the Ministry of Steel Shri Vishnu Deo Sai provided this information in reply to a question in Lok Sabha today (July17,2017).