Sail To Invite Fresh Bids For Bhilai Oxygen Unit

Steel Authority of India Ltd (SAIL), which managed to raise Rs 125 crore through sale of non-core assets, has renewed efforts to sell its oxygen plant at Bhilai.

The public sector steel major will once again initiate the tendering process in a month. "There were a few interested parties last time but we could not clinch a deal for we could not agree on the price," M K Moitra, director, personnel and corporate planning, said.

Moitra declined to comment on the targeted proceeds from the sale this time. SAIL had expected to garner around Rs 250 crore last time. BOC, Praxair, Inox Air Products and Messers Germany were, however, ready to pay only a fraction of the reserve price.

In fact, BOC and Praxair pulled out from the race after they felt that the floor price set by SAIL at Rs 403 crore was too high.

The merchant bankers for the deal were SBI Capital Markets and Dresdner Kleinworth Benson. SAIL has formed a fully owned subsidiary, Bhilai Oxygen, for the purposes of the sale. The strategic partner would pick up a controlling stake in the subsidiary.

SAIL hoped to realise more than Rs 900 crore from divestment of its two power plants at Durgapur and Rourkela Steel Plants, Bhilai oxygen plant and some real estate.

The steel major has already transferred its captive power plants to its subsidiary company named, SAIL Power Supply Company Ltd, and transferred 50 per cent of its stake in the company to National Thermal Power Corporation Ltd. The price of the two units was fixed at Rs 391 crore.

SAIL's realisations from divestment is crucial as the company endeavouring to come closer to a break-even position in the current fiscal through restructuring gains.