Strategic divestment to improve the mills’ performances.

The Government has given ‘in-principle’ approval for strategic disinvestment of three loss-making units of Steel Authority of India Ltd (SAIL).

These are Visveswaraya Iron and Steel Plant, Bhadravati, Salem Steel Plant, Tamil Nadu and Alloy Steel Plant, Durgapur.

The details of the significant steps taken by SAIL to improve the financial performance of the three plants are as under:-

(i) Capital investment to improve the facilities;
(ii) Reduction in consumption level of raw materials;
(iii) Production optimization and product-mix improvement;
(iv) Improvement in techno-economic parameters;
(v) Waste management;
(vi) Strict control on demurrage expenses;
(vii) Reduction in inventory of finished/semi-finished products, stores & spares and raw materials, etc;
(viii) Reduction in logistic cost for transportation of Raw Materials and Finished Steel; and
(ix) Reduction in specific power and water consumption.

The entire process of the strategic disinvestment is to be carried out with the help of Transaction Adviser (TA), Legal Adviser (LA) and Asset Valuer (AV) who would advise on appropriate mechanism of disinvestment, Minister of State for Steel, Vishnu Deo Sai, told Lok Sabha on 17 July 2017. fii-news.com