merisarkar news service, New Delhi, February 15, 2011
Management control of SCL: SAIL
Maharatna Steel Authority of India Limited (SAIL) has formally acquired 50 per cent of the shares of Steel Complex Limited (SCL) in Kozhikode held by Kerala Government.
SAIL took over the operations of SCL on February 13. SAIL-SCL Limited, the joint venture company resulting from the acquisition, will work towards the revival of SCL by setting up a new rolling mill of 65,000 tonnes per annum capacity for producing high grade (Fe 500 and above) TMT bars at an estimated investment of Rs 45 crore,' an official release said.
The joint venture is expected to be a milestone in the Government’s policy of bringing together synergies of PSUs and strengthening them to be competitive in the market, it said.
On the request of the state government, SAIL had signed an MoU in May 2008 for revival of SCL, owned by the state government.
Subsequently, an agreement was signed between Kerala and SCL in December 2008 to enable acquisition of shareholding by SAIL, development of SCL by setting up a rolling mill and fulfillment of certain terms and conditions by the state government.
The venture then became operational in December 2010.
