The Steel Authority of India (SAIL) is all set to rope in separate strategic partners for three special purpose vehicles (SPVs), which are planned for the Rs 38,400 crore Sindri project and give them 49% stake in the SPVs, agency reports. These strategic partners are likely to come from the private sector only.
SAIL has plans to set up a 5.6 million tonne per annum (mtpa) steel plant with an outlay of Rs 29,000 crore, a 1.15 mtpa gas-based fertiliser plant for Rs 4,400 crore and the rest Rs 5,000 crore for the 1,000 MW power plant.
"Separate partners will be inducted in each of the three ventures, but shareholding in these projects will be arrived at in such a manner that the shareholdingbetween the public sector units do not go down below 51%," a source in the Steel Ministry said.
Cabinet Committee of Economic Affairs (CCEA) has already cleared SAIL's proposal to revive the Sindri unit of erstwhile Fertiliser Corporation of India. The unitstopped production in 2002.
CCEA has also given nod for supply of 2.1 million metric standard cubic meter per day gas for the fertiliser unit, but stated that SAIL has to arrange its own raw material and fuel linkages for steel and power plants.
The source said all the projects would be funded in a debt-equity ratio of 70:30. The projects would be completed within 48 months from the date of placement of orders after receipt of the final clearance of the draft rehabilitation scheme for revival of the unit, he added.