Indications are that the Indian government has dropped Alloy Steel Plant (ASP) from tIndications are that the Indian government has dropped Alloy Steel Plant (ASP) from the list of subsidiaries of Steel Authority of India Limited (SAIL) for disinvestment, according to a government official.he list of subsidiaries of Steel Authority of India Limited (SAIL) for disinvestment, according to a government official.
The official said that it is evident from the proceedings of a meeting of the ministry of steel, that disinvestment of other subsidiaries of SAIL, Salem Steel Plant (SSP) and Visvesvaraya Iron and Steel Plant (VISP), will proceed as planned.
“A meeting of the inter-ministerial group (IMG) under the chairmanship of the secretary of the Department of Investment and Public Management (DIPAM) regarding disinvestment of two SAIL units SSP and VISP was held of October 9, where issues involved in the finalization of the transaction document for the strategic sale of these SAIL units were considered,” the official said, quoting from a ministry note and pointing out that the government meeting was silent on the issue of a similar strategic sale for ASP, which is located in Durgapur in the eastern state of West Bengal.
While no official reason has been cited for dropping ASP from the list of companies for strategic sale, some sources in the government said that, since privatization of any government company entailed political risks, ASP may have been excluded from the list in view of the elections in West Bengal which are scheduled for next year.