SAIL invites bids for outright sale of Alloy Steels Plant

2-exclusive

State-run SAIL invited bids from companies for strategic sale of its Alloy Steels Plant at Durgapur, earlier in the week.

The government had last year cleared outright sale of state-owned SAILs three special steel units — Salem Steel Plant, Alloy Steels Plant and Visvesvaraya Iron and Steel Plant.

Bids for Alloy Steels Plant in Durgapur are to be submitted by April 11, 2018.

“Alloys Steels Plant (ASP) of SAIL is proposed for strategic divestment and the company has appointed SBI Capital Markets Ltd (SBICAP) as its transaction advisor to advice and manage the process,” the steel maker said in a stock exchange filing.

The bidding process is to be implemented through open competitive bidding route, it said.

As part of the strategic disinvestment, Alloy Steels Plant will be transferred to the strategic investor, on a going concern basis, which is by way of slump sale through business transfer agreement.

“The strategic investor will be appointed through a competitive bidding process, which shall be handled by the Government of India and its functionaries including, but not limited to, SAIL and Ministry of Steel,” said the preliminary information memorandum for inviting bids.

The total capacity of the Alloy Steels Plant is 2.46 lakh MT per annum of liquid steel and 1.84 lakh MT per annum of saleable steel.

Steel Authority of India Ltd (SAIL) has five integrated steel plants, a ferro-alloys plant and three special steel plants.

Source: PTI