SAIL Extends Disinvestment EoI Deadline For Better Response

The deadline for submission of initial bids for stake sale of SAIL’s three plants Visvesvaraya Iron and Steel Plant (VISP), Alloy Steels Plant (ASP) and Salem Steel Plant (SSP) has been extended further to September 10 to improve chances of their disinvestments.

In October, 2016, the government accorded ‘in-principle’ approval for strategic disinvestment of these three units.

The entire process of strategic disinvestment is being overseen by an InterMinisterial Group (IMG) constituted by the Ministry of Steel and chaired by the Secretary, Steel.

SAIL board, after giving ‘in-principle’ approval for the disinvestment, appointed SBI Capital to assist in the process.

Upon receipt of approval of the government for issue of Preliminary Information Memorandum (PIM) and Expression of Interest request (EoI) in February, 2018 from the ministry, public notice for inviting EoI for ASP, Durgapur was issued.

“Since, the EoIs received in response to the above were not meeting the specified eligibility criteria, the process has been annulled. Fresh process in this regard has been initiated and revised PIM/EoI requests of ASP, VISP and SSP have been issued,” SAIL has disclosed in its annual report.

SAIL operates and owns five integrated steel plants at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur and three special steel plants at Salem, Durgapur and Bhadravati.

Another Unit, Chandrapur Ferro-Alloy Plant (CFP) produces Ferroalloys. It also has SAIL Refractory Unit (SRU) at Bokaro, with four refractory manufacturing units in Jharkhand and Chhattishgarh.

Changes in Bid documents

SAIL has subsequently brought in some following modifications in the bid documents for Salem Steel Plant.

The consortium members are now permitted to change the shareholding ratio among the consortium members in the consortium, subject to the lead member continuing to hold at least 26 percent equity shareholding and other consortium members continuing to hold at least 20 percent equity shareholding in the Consortium SPV for a minimum period of five years from the date of closing under the definitive agreements.