By IANS,
Thiruvananthapuram : The ailing Kerala government-owned Steel Complex Ltd (SCL) at Kozhikode will be now managed by public sector Steel Authority of India Ltd (SAIL) as a joint venture project.
“The agreement to this effect would be inked on May 3 at Kozhikode,” state Industries Minister Elamaram Kareem told reporters here Tuesday.
This will be SAIL’s first venture in the state. At present, it only has a steel depot at Kochi. The SCL, set up in 1972, registered profits for just two years during 1985-87.
According to the agreement, SCL would become a 50:50 joint venture, with SAIL pumping in funds for its modernisation and tackling management control.
Currently, the state government holds 93.2 percent stake in SCL while the rest is with private individuals. SCL has liabilities in excess of Rs.1 billion.
SAIL also plans a new rolling mill with 60,000-tonne annual capacity at Kozhikode.