New Delhi: The government is considering
divesting some of its stake in the country's largest steel
producer SAIL and the same may be discussed in the PSU's board
meeting scheduled on Friday.
The equity sale could go along with the proposed public
issue of the PSU and it is likely to be discussed at its
upcoming board meeting, a top steel ministry official said,
requesting anonymity.
When contacted, Steel Secretary P K Rastogi said: "It is
too premature to talk about that (disinvestment). But, right
now we are in talks (with SAIL) assessing their funding
requirement. Let everything regarding public issue and fund
requirement get crystallised."
SAIL is awaiting the steel ministry's approval for its
proposed public issue to raise funds to part finance its Rs
70,000-crore expansion project.
A senior SAIL official, too, said the equity-sale could
possibly accompany the proposed public issue. SAIL's board has
already approved the public offer.
However, the quantum of the proposed disinvestment could
not be verified. But, the SAIL official said the measures
would be taken in a way that the government's holding in the
firm does not fall below 75 per cent.
The government currently owns 85.82 per cent stake in
SAIL. Besides, about 4.59 per cent is with the Life Insurance
Corp and the rest is with the public.
SAIL has a capex programme of about Rs 10,300 crore for
the current fiscal, half of the amount would come from debt.
The company's shares closed almost flat at Rs 162.35 on
the BSE.
The company is in the process of expanding its annual
production capacity to about 23 million tonnes by 2012 from
the present 14 million tonnes. SAIL Chairman S K Roongta said
the company "is firming up plans to take it to 26 million
tonnes" thereafter.
Bureau Report
First Published: Thursday, August 27, 2009, 17:57