The Hindu : Business : Indian Iron and Steel merges with SAIL

Online edition of India's National Newspaper
Friday, Feb 17, 2006

Business

Business

Indian Iron and Steel merges with SAIL

Special Correspondent

KOLKATA: The Indian Iron and Steel Company (IISCO), a 100 per cent subsidiary of Steel Authority of India Ltd (SAIL), has been amalgamated with the parent company with effect from Thursday. As per the order given by the Company Affairs Ministry, the appointed date of amalgamation is April 1, 2005.

A SAIL release said the matter of amalgamation of IISCO with SAIL was referred to the Ministry of Company Affairs following the approval of the Centre in June 2005, which was then cleared by the Board for Industrial and Financial Reconstruction (BIFR), the Union Steel Ministry and SAIL shareholders.

With the merger, the country's largest steel maker grows further in size with five integrated steel plants under its fold. A Rs. 8,000 crore investment plan had already been finalised for technological upgradation of IISCO, taking its hot metal production capacity to 2.5 million tonnes by 2011-12 from 8.5 lakh tonnes. SAIL Chairman, V. S. Jain, said the trend in the steel industry the world over had been towards merger and consolidation, leading to greater shareholder value. It may be mentioned here that IISCO's iron ore mines at Chiria in Jharkhand were rich in quality and quantity and now SAIL would be able to derive the benefit for its group companies.

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