The Indian government has abandoned plans for privatization of Visvesvaraya Iron and Steel Plant (VISP), a wholly owned subsidiary of state-run Steel Authority of India Limited (SAIL) owing to lack of private bidders, a government statement said on Thursday, October 13.
“Multiple EoIs (expression of interests) had been received and qualified bidders had conducted due diligence. However, finally due to insufficient bidder interest in proceeding further with the transaction, the government with approval of Empowered Group of Ministers has decided to annul the EoI and thereby terminating the present transaction,” the Department of Investment and Public Asset Management (Dipam) said in a statement.
The Indian government in 2016 had approved the privatization of SAIL subsidiaries like VISP, Salem Steel Plant (SSP) and Alloy Steel Plant (ASP).
VISP, located in southern state of Karnataka, produces pig iron and alloy and special steel through the blast furnace route.