SAIL prepares to exit non-operational, non-performing joint venture firms

India's largest steel maker SAIL has started the process to exit some of its joint ventures that are either non-operational or non-performing, the public sector major has said in a report.

The steelmaker is also exploring options to monetise its investment in certain JV companies, the latest report said.

"SAIL has initiated actions for closure/exit from certain joint venture (JV) companies which are either non-operational or non-performing," Steel Authority of India Ltd (SAIL) said in its annual report 2017-18.

SAIL has formed joint venture companies in different areas, namely power generation, rail wagon manufacturing, slag cement production, securing coking coal supplies from overseas sources, among others.

Some of the joint ventures include NTPC-SAIL Power Co Ltd, Bokaro Power Supply Co Pvt Ltd and International Coal Ventures Pvt Ltd (ICVL).

According to sources, some of the non-operating JVs of the PSU include UEC Sail Information Technology Ltd and Romelt SAIL (India) Ltd.

SAIL and ArcelorMittal also signed a pact in May 2015 to explore the possibility of setting up an automotive steel manufacturing plant under a joint venture in the country.

The proposed JV will construct a state-of-the-art cold rolling mill with a capacity of about 1.5 million tonnes per annum (MTPA) and other downstream finishing facilities in the country that will offer technologically advanced steel products to India's rapidly growing automotive sector.

The company's hot metal output was at 15.983 million tonnes (MT) in 2017-18. SAIL's crude steel output was at 15.021 MT and saleable steel output was at 14.071 MT in the last fiscal.