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Putin may discuss Iisco revival

Aditi Phadnis & Mahua Venkatesh in New Delhi

Russian President Vladimir Putin during his India visit is likely to discuss a revival plan for the ailing Indian Iron & Steel Company.

Senior officials at Steel Authority of India Ltd, the parent company of Iisco, however, said it might not lead to any definite plan immediately.

"The discussions are unlikely to lead to a breakthrough. But Iisco will certainly benefit if Russia agrees to part-fund the revival project," a senior official told Business Standard.

The revival proposal is lying with IDBI, the operating agency. Last year also, talks for a possible joint venture with Russia took place. But things failed to take any shape.

In March, Iisco had sent a letter to Moscow, but did not receive any concrete response.

The Union Cabinet had approved a Rs 881 crore (Rs 8.81 billion) revival package for Iisco and a budgetary support of Rs 350 crore (Rs 3.5 billion) was granted. To raise the balance amount bonds would be issued.

The government had also decided to shut Kulti Works, a unit of Iisco. Iisco was referred to the Board for Industrial Finance and Reconstruction in 1994. It had earlier given three months to the government to firm up the plan, starting from April.

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