Calcutta, Nov. 3 (PTI): The Steel Authority of India Ltd (SAIL) has virtually put divestment of its ailing subsidiary Indian Iron and Steel Co (IISCO) on the back burner by finalising a Rs 1,081-crore package spread over 10 years, to sustain operations at the Burnpur-based plant.
Newly-appointed IISCO chief S. C. K. Patne said that IDBI, the operating agency, was currently examining the package prepared by the company for IISCO. Asked if the divestment proposal was off, Patne said SAIL has chalked out the package mainly to sustain operations since the joint venture proposal with TPE has not borne fruit so far. IDBI also discussed the proposal with the creditors last month and asked Dasturco, which was examining the technical part, to submit its report by the middle of this month, he said.
According to the plan, IISCO is expected to make profits from the fourth year and its net worth will be positive after the ninth year, he said.