The government has approved outright sale of state-owned three special SAIL plants, including Salem and Alloy Steel plants. SAIL has now sought advisors, including legal and merchant bankers, to carry out the strategic sale along with transfer of management control in the three steel plants — Alloy Steels Plant (ASP), Salem Steel Plant (SSP) and Visvesvaraya Iron and Steel Plant (VISP).
“The government of India has ‘in-principle’ decided for strategic disinvestment of ASP, SSP and VISP of Steel Authority of India Ltd with transfer of management control,” SAIL said in the request for proposal (RFP) for appointing advisors. The Maharatna PSU is scouting for transaction advisor from professional consulting firms, investment bankers, financial institutions, to provide advisory services and manage the disinvestment process.
The transaction advisor will advise SAIL on the modalities and timing of the strategic disinvestment of the three steel plans and prepare a detailed operational scheme to successfully implement the process, indicating tentative timelines for each activity. The strategic sale of these three units is likely to happen only in the next financial year. The government has budgeted to raise ₹15,000 crore from strategic disinvestment in 2017-18.