The government announced on Wednesday that it has opted against the privatization of SAIL’s Salem Steel Plant (SSP).
SAIL had invited global Expressions of Interest (EoIs) on July 4, 2019, for the strategic disinvestment of SSP, located in Tamil Nadu. Despite receiving multiple EoIs and shortlisting potential bidders, the government decided to cancel the current EoI and terminate the transaction due to the lack of interest from the shortlisted bidders. This decision was made with the approval of the Alternative Mechanism (Empowered Group of Ministers), as reported by the Department of Investment and Public Asset Management (DIPAM) on its website.
The Cabinet Committee on Economic Affairs (CCEA) had greenlit the strategic sale of three units of Steel Authority of India Ltd (SAIL) in 2018, including Alloys Steels Plant (ASP) in Durgapur, SSP in Tamil Nadu, and Visvesvaraya Iron and Steel Plant (VISP) in Bhadrwati, Karnataka. However, the government called off the sale process of ASP in 2019, and in 2022, the strategic sale of VISP was terminated, citing a lack of interest from potential bidders.
Steel Authority of India Limited (SAIL) is one of the biggest steel producers in India. SAIL is mostly based in the eastern and central areas of India, near to local raw material supplies. It operates five integrated facilities and three specific steel plants that produce iron and steel. A wide variety of steel products are produced and marketed by SAIL.
