SAIL to benefit from financial restructuring

By Our Staff Reporter

CALCUTTA, FEB. 28. Thanks to an improved performance in the last quarter and Rs. 700 crore benefit out of the recently approved restructuring scheme, the Steel Authority of India could restrict loss in this fiscal below Rs. 2,000 crores, according to chairman Mr. Arvind Pande. The earlier projections had put it beyond Rs. 2,500 crores, thereby making the net worth negative.

Addressing a press conference here today, Mr. Pande said the company would take a few more years to come back in black. The restructuring, however, would not be completed before five years.

Apart from reducing the manpower from 1.6 lakh to 95,000, the approved scheme identified seven none-core business for fast disinvestment.

The disinvestment process of Salem Steel has just begun. Five parties expressed their `interest'. ``However, it would take time to turn merely an expression of interest into a business deal''.

The disinvestment of IISCO, hanging in the air for a long time, is going to take a new turn. With the Government waiving Rs. 1,900 crore loan, the ailing company is having a `clean' balance sheet with positive net worth for the time being. Naturally SAIL would like to dispose it fast.

The proposal of the Russian company is so far not supported by the Russian Government. ``We may have to invite bids once again'', Mr. Pande said.

In tandem with the disinvestment, the company is at present considering dividing SAIL into separate business entities. A decision is awaited whether the four facilities would each be made subsidiaries or be brought under two companies specifically assigned to produce long and flat products respectively.

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Section  : Business
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