Sail Gets Selloff Nod, Citu Flays Move

Even as the Steel Authority of India Ltd (SAIL) obtained the consent of its shareholders to undertake divestment in its non-core businesses at an extraordinary general meeting (EGM) held here yesterday, the Centre of Trade Unions (Citu) has denounced the move terming it as a "conspiracy hatched by the Government of India and SAIL to hurriedly and undemocratically close the meeting."

The trade union in a statement alleged that the meeting was closed hurriedly before the scheduled time "shutting out hundreds of shareholders who had gathered to seek entry to the meeting venue."

According to a statement issued by the steel behemoth, the shareholders, including the Government of India, unanimously gave their permission to "sell, lease or otherwise dispose of by divesting either by joint venture or otherwise" some units of the company "while protecting jobs of the existing employees". The units of the steel giant being divested include the captive power plants at its three integrated steel plants of Sail, Oxygen Plant No II at Bhilai, Salem Steel Plant, Alloy Steels Plant, Visvesvaraya Iron & Steel Plant and the Rourkela Fertiliser Plant.

 

"The time bound implementation of the business restructuring measures will get the company back to a position of profitability within a span of two years," the SAIL statement, quoting the SAIL chairman, Arvind Pande as telling the shareholders, stated.

However, the Citu have alleged that the move to divest is "anti-national" and its intentions to liquidate the public sector giant has "thrown to the winds the procedural requirements under the Companies Act, 1956."

The government had on February 18, 2000, given its approval to initiate the process of business restructuring of SAIL which involves the transfer of both assets and manpower of the units being divested.