Ending the prolonged uncertainty over the revival of Burnpur-based Indian Iron and Steel Company (IISCO), Union Steel Minister Ram Vilas Paswan on Tuesday announced the decision to merge the ailing steel plant with the Steel Authority of India Ltd and said the proposal would now be taken to the Union Cabinet for formal approval.
"The government has decided to merge IISCO with SAIL," Paswan told newspersons at the state secretariat emerging from a meeting with West Bengal Chief Minister Buddhadev Bhattacharjee.
The minister said he would now take the proposal to the Union Cabinet for approval.
He said SAIL earned over Rs 2,500 crore (Rs 25 billion) in profit this year and therefore funds would not be a problem. Whatever was required for IISCO would be given.
SAIL Chairman V S Jain, who accompanied Paswan during his meeting with the Chief Minister, later said that an in-principle decision had been taken for IISCO's merger with SAIL.
"Now the required procedures regarding merger will be followed," he said.A SAIL spokesman said the state government agreed to continue its support under a package for the revival of IISCO which was currently underway.