Final call on strategic divestment of SAIL units by September

SAIL had earlier said the govt will hold auction to identify strategic buyers for its subsidiaries

The government is likely to take a final call on strategic disinvestment of three SAIL units by September, and due diligence is already on for the same.

While the government in-principle had approved strategic disinvestment of SAIL's Bhadravati, Salem and Durgapur (alloy steel plants), modalities are yet to be worked out.

"We hope that within 6-7 months, we would be in a position to take a call on whether to disinvest or not," an official said.

There is an in-principle decision to disinvest some units (of SAIL), and based on that, the government is moving ahead, an official privy to the development said.

"We have given deadlines... Because there are a lot of processes to be done -- evaluation and appointing transaction advisors, legal advisors, asset valuers, based on which the RFP (request for proposal) will be floated for actually inviting people, short-list those bidders.. All that takes time," the official added.

The government had earlier said it would not go in for distress sale of the three SAIL subsidiaries and rather look for a management that will turn around the units.

"While in-principle the government said it will disinvest, let us say if the government feels that the value of this property is x and if the government is getting 0.8x or 0.5x, naturally the government will not like to sell. So, that will be known in six months or so when the government actually get the bids," the official explained.

SAIL had earlier said the government will hold auction to identify strategic buyers for SAIL subsidiaries -- Bhadravati, Salem and Durgapur.

Tasked by the Prime Minister's Office to examine the viability of ailing state-owned companies, Niti Aayog had earlier submitted two separate lists of sick and loss-making PSUs, one comprising those that can be closed down and the other of those that should be privatised through strategic sale.