By IANS
Kozhikode : State-owned Steel Authority India Ltd (SAIL) has initiated steps to takeover the ailing Steel Complex Ltd (SCL) owned by Kerala government here.
SAIL had already conducted two rounds of discussions with company authorities and the state government in this regard.
The takeover is expected to bring in an investment of around Rs.3.5 billion to the state.
“After the takeover, SAIL is expected to invest in SCL and ancillary units. It has plans to start small units that will help it meet demands from the Kerala market,” said K. Sasikumar, managing director of SCL.
A delegation from SAIL had visited SCL in the first week of Nov and assessed the facilities at the unit.
The SCL is currently producing steel billets, which are used by rolling mills to make iron bars used in construction.
“From June, SAIL has been engaged in participation management with us. SAIL engineers are working here and helping us in increasing the quality of products, in marketing and in the supply of raw materials.”
“SAIL has already drawn up plans to set up a rolling mill at SCL and is working on the project report,” Sasikumar said.
The rolling mill will help the unit derive more value for its products, he added.
As part of its revival plan, SCL has been expecting aid from the state government and financial institutions to establish a rolling mill.
It had earlier submitted a proposal in this regard to State Bank of India.
“By having a production unit here, SAIL can effectively compete in the Kerala market. At present they are bringing products from their plants in Bhilai and Durgapur. Due to transport cost, their products are less competitive in Kerala compared with local producers,” Sasikumar said.