Mr V.S. Jain, Chairman, SAIL, responds to the Government's approval of merger of IISCO with SAIL

Press Release
New Delhi

We are glad to know that the Cabinet has decided to merge IISCO, a subsidiary of SAIL, with its parent company.

Now, this will be followed with the required process and SAIL will accordingly take up the matter with the Department of Company Affairs and other agencies concerned.

With this approval, SAIL is now in a position to finalise and implement future plans for further growth of IISCO. SAIL would invest in upgrading various facilities of IISCO at Burnpur as well as its collieries and mines. The Burnpur plant, which produces around 0.3 MT of steel at present, will be upgraded to enhance its capacity to around 2 MT by 2011-12.

With SAIL’s financial and managerial capabilities and availability of potentials with IISCO like mines/collieries, large infrastructural facilities and good work culture, there would be greater synergy for capacity expansion and technological upgradation of the plant.

IISCO needs infusion of manpower from various SAIL units to strengthen it to meet the requirement of absorption of new technology, and also to bridge the gap in skills that have eroded over time. Inter se, transfer of skilled manpower between plants is easier than amongst separate companies. IISCO has infrastructure like land, mines, etc., which can be synergically used by SAIL more objectively. This would help both IISCO and SAIL in their respective growth plans. Inter-plant synergy and optimisation can also be achieved in many other areas like marketing, mines, sourcing of raw materials, financial matters, etc.

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