Centre's disinvestment plan: A stress test for zombie steel plants

The disinvestment of loss-making plants may likely attract interest from secondary steel makers rather than the big players

With the government looking to divest loss-making steel assets, significant interest from secondary players is most likely this time apart from the anticipated list of large integrated primary steel producers, said industry experts.
 
Rashtriya Ispat Nigam Limited (RINL), Neelachal Ispat Nigam Ltd (NINL), NMDC Integrated Steel Plant (NISP)-Nagarnar, Ferro Scrap Nigam Ltd and three units of Steel Authority of India (SAIL) — Alloy Steels Plant, Durgapur; Visvesvaraya Iron and Steel Plant, Bhadravati; and Salem Steel Plant, Salem — constitute the divestment list. All the three units of SAIL have been loss-making for more than five years.
 
“Some promoter-driven