Lok Sabha Question No. 4136 (UNSTARRED), answered on 2017-03-27
Subject: Disinvestment of SAIL Plants
Ministry: STEEL
Asked by: A. ARUNMOZHITHEVAN, PRATHAP SIMHA, M. UDHAYAKUMAR, TAMRADHWAJ SAHU

## LOK SABHA

## UNSTARRED QUESTION NO.4136 FOR ANSWER ON 27/03/2017

## DISINVESTMENT OF SAIL PLANTS

4136.  SHRI A. ARUNMOZHITHEVAN: SHRI PRATHAP SIMHA: ADV. M. UDHAYAKUMAR: SHRI TAMRADHWAJ SAHU:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government  has  given in principle approval for strategic disinvestment of certain plants of Steel Authority of India Limited (SAIL);
- (b) if  so,  the  details  thereof  including  the  modalities  being  worked  out  in  this regard, plant-wise;
- (c) whether the Government will hold auction to identify strategic buyers for SAIL subsidiaries  -  Bhadravati,  Durgapur  and  Salem  in  the  coming  months,  if  so,  the details thereof;
- (d) whether the Government has examined the viability of ailing steel PSUs in the country; and
- (e) if  so, the details thereof along with the corrective steps taken/proposed to be taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)to(c): The Government has accorded 'in-principle' approval for stratetic disinvestment for SAIL's three units i.e. Visveswaraya Iron and Steel Plant (VISP), Bhadravati,  Salem  Steel  Plant  (SSP),  Tamil  Nadu  and  Alloy  Steel  Plant  (ASP), Durgapur.    These  three  units  of  Steel  Authority  of  India  Limited  (SAIL)  have  been consistently making losses.  The entire process of the strategic disinvestment would be carried out with the help of a Transaction Adviser (TA), a Legal Adviser (LA) and an Asset Valuer (AV).  The Request for Proposal (RFP) for appointment of TA, LA and AV have been uploaded on SAIL website.

(d)&(e): Government is aware of the problem being faced by the steel sector. In order to protect the steel sector from unfair competition and improve its performance, the following steps have been taken by the Government:-

- (i) Government has notified Mines And Minerals (Development And Regulation) Amendment  Act,  2015  to  streamline  grant  of  Mining  Leases  in  order  to maintain  sufficient  availability  of  raw  materials  for  various  sectors  including steel sector.
- (ii) Increased peak rate of Custom Duty on steel to 15%.  Effective rate of import duty  was  increased  in  phases  to  10%  on  Long  products  and  12.5%  on  Flat products from pre-revised level of 5% and 7.5% respectively.

- (iii) Against  a  petition  by  the  domestic  steel  producers,  Safeguard  duty  on  HR Coils  of  20%  notified  in  September,  2015  provisionally  and  final  notification issued  for  the  same  in  March,  2016  extending  20%  Safeguard  duty  up  to September,  2016.    Thereafter,  phased  reduction  to  18%  (till  March,  2017), 15% (till September, 2017) and 10% by March, 2018.
- (iv) The Government of India notified Minimum Import Price (MIP) on select steel products (05.02.2016) and further extended it on certain steel products for two months with effect from 05.08.2016 and again for two months with effect from 05.10.2016.
- (v) Provisional Anti-dumping duty notified on import of flat products (Hot Rolled & Cold  Rolled)  and  on  Wire  Rods  from  China,  Japan,  Korea,  Russia,  Brazil, Indonesia  &  Ukraine  vide  notifications  dated  08.08.2016,  17.08.2016  and 02.11.2016.

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