The privatization of Indian state-run steel producer Steel Authority of India Limited’s (SAIL) Salem Steel Plant (SSP) and Alloy Steel Plant (ASP) will not be completed within the current fiscal year, government sources said on Wednesday, January 26.
The sources said that the two special steel producing units of SAIL were put on the list of government companies to be privatized in early 2021 but the process was not started and hence disinvestment of government holding will not take place in the current fiscal year.
Though no official reason is available on the new timeline for the privatization of the two mills, industry sources said that the government is not pushing ahead with privatization of any government companies, largely owing to political opposition to the handing over of government-owned companies to private investors. This is also reflected in the government’s decision not to announce privatization of two state-run commercial banks.
SSP, located in southern state of Tamil Nadu, has a capacity for production of 66,600 mt of cold rolled stainless steel flat products and 272,000 mt per year of hot rolled stainless steel.
ASP, located in West Bengal in the east, has capacities for production of non-stainless steel plates, concast slabs and blooms, and forged steel rounds and squares.