Sail Set To Offer Majority Stake In Three Entities

Public sector Steel Authority of India Ltd (SAIL) has opened the doors to majority equity participation by a joint venture (JV) partner in at least three of the areas earmarked for divestment within the current financial year. The earliest indication of a policy shift to this effect was manifested in the recent tender floated for Salem Steel Plant (SSP).

The company's stand till last year was to retain 51 per cent stake in any joint venture proposal mooted. After Salem, the oxygen plant at Bhilai and the fertiliser plant at Rourkela are also expected to follow suit.

It is understood from senior company sources that the SAIL board has taken an in-principle decision to this effect. The SAIL spokesperson in Delhi was not available for comment but sources elaborated, "Offering majority stake to the joint venture partner would make these ventures more attractive and may speed up the process of restructuring. SAIL has been given till the end of this year to exit these four areas."

 

According to sources, the SAIL brass is still ambiguous on the procedure with respect to the power sell-off. For the power plants, the company has mooted 26 per cent participation by a strategic partner and this is unlikely to change. The National Thermal Power Corporation (NTPC) is slated to pick the stake in the power venture.

The company has also taken a decision to allow the Alloy Steel Plant (ASP) and the Visvesvaraya Iron and Steel Plant (VISL) a grace period upto April 1, 2000, before it puts the two loss-making units on the block.

As part of the asset restructuring plan approved by the union government this year, SAIL is scouting joint venture participation in four non-core divisions _ captive power plants at Bokaro, Durgapur and Rourkela, oxygen plant at Bhilai, fertiliser plant at Rourkela and Salem Steel Plant. SAIL has also invited joint venture participation for its ailing subsidiary Indian Iron and Steel Co Ltd (Iisco).