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In a recent development, the Indian government has opted against the privatization of the Salem Steel Plant (SSP) owned by Steel Authority of India Ltd (SAIL). Initiated in 2019, the global call for Expressions of Interest (EoIs) failed to garner substantial interest from potential buyers, resulting in the annulment of the sale.
The Department of Investment and Public Asset Management (DIPAM) confirmed the termination, citing the reluctance of shortlisted bidders to proceed with the transaction. This decision aligns with previous occurrences involving other units of SAIL, Alloys Steels Plant (ASP) and Visvesvaraya Iron and Steel Plant (VISP), both witnessing unsuccessful attempts at strategic sales.
This cancellation comes after the approval for the strategic sale of three SAIL units by the Cabinet Committee on Economic Affairs (CCEA) in 2018. Despite government efforts to privatize state-owned steel plants, the trend of inadequate buyer interest persists.
The failure of this privatization attempt reflects a larger challenge within the steel industry. Previous instances of aborted sales indicate a recurring pattern of disinterest from potential investors, raising questions about the attractiveness of state-owned steel assets.
This move signifies a setback in the government's plans for strategic disinvestment, raising concerns about the feasibility of privatization in the steel sector. It underscores the need for reevaluation in attracting investors to state-owned steel entities, crucial for fostering growth and competitiveness. Steelguru
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- [Editor:kangmingfei]
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