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Jindals upbeat on Alloy Steels

New Delhi, Oct. 3: Jindal Strips, the sole bidder for SAIL’s stainless steel units, has said Durgapur’s Alloy Steels Plant will need an investment of Rs 100-150 crore to reach a position where it can carry out production optimally.

SAIL had offered the Jindals a takeover package for Salem Steel Plant (SSP) and Alloy Steels Plant (ASP) when the divestment of the Salem unit turned into a one-horse after the pullout of Tata Steel-Arcelor; ASP had been unable to find any takers for its global tender floated last year.

Company officials say ASP was not on its initial shopping list but lack of integrated operational facilities at SSP forced them to include it. “We will source raw materials from ASP since availability of raw materials is a critical factor in operational sustenance of Salem’s output,” a senior company official said. “We are in the final stages of formulating a due diligence report on ASP.”

He said the company has sought time till the month-end for submission of the price bid since it is working on a business plan to synergise both units’ operations. Sources say the price bid will be in the range of Rs 1,000-1,100 crore. The business plan in addition to marketing and procurement strategies will also include investment commitment for additional facilities at the Salem steel plant.

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