SAIL to sell stakes in three units via auction
30 Nov 2016
State-run Steel Authority of India Ltd (SAIL) has received in-principle approval from the government to sell stakes in three units, the company said in a statement on Tuesday.
The company will be selling stakes in the Bhadrawati, Salem and Durgapur steel plants through a two-stage auction process to strategic buyers, the statement said.
SAIL, the state-owned holding company of public sector steel companies, and the country's largest steel maker, said the government will hold auction to identify strategic buyers for the three SAIL subsidiaries.
"Government of India, Ministry of Steel, has communicated the 'in-principle' approval of the Cabinet Committee on Economic Affairs (CCEA) of the Government of India for strategic disinvestment of the Bhadrawati, Salem and Durgapur (alloy steel plant)," SAIL said in a regulatory filing.
It further said, "Disinvestment of these units shall be to strategic buyer(s) to be identified through two-stage auction process as recommended by the Core Group of Secretaries on Disinvestment.
One of the seven Maharatna public sector enterprises, SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.
The government of India owns about 75 per cent of SAIL's equity and retains voting control of the company. However, SAIL, by virtue of its 'Maharatna' status, enjoys significant operational and financial autonomy.