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SAIL gets nod to divest non-core units

The Steel Authority of India Limited, or SAIL, today formally obtained the consent of its shareholders to divest its non-core businesses at an extraordinary general meeting.

The shareholders, including the Government of India, unanimously gave their permission to sell, lease or otherwise dispose of by divesting either by joint venture or otherwise some units of the company, while protecting the jobs of the existing employees.

The units being divested include the captive power plants at three integrated steel plants of SAIL, oxygen plant-II at Bhilai, Salem Steel Plant, Alloy Steels Plant, Visvesvaraya Iron and Steel Plant and the Rourkela Fertiliser Plant.

The Government of India had, on February 18 last given its approval to initiate the process of business restructuring of SAIL that involves the transfer of both assets and manpower of the units being divested.

Addressing the shareholder, chairman Arvind Pande said, the time-bound implementation of the business restructuring measures will get the company back to a position of profitability within a span of two years.

While explaining that restructuring of the business activities of SAIL would ensure its long-term competitiveness, he pointed out that meaningful private participation in the management of the units being considered for divestment is expected to plug their cash and financial losses.

All SAIL board members were present at the meeting held in New Delhi, while deputy secretary of Ministry of Steel Jayashree Mukherjee represented the Government of India.

UNI

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