'Merger to help Steel Authority, IISCO grow'
The merger of IISCO with its state-run parent, will help the combined co become bigger and stronger, says Paswan.india Updated: Feb 25, 2006 15:12 IST
The merger of Indian Iron and Steel Company (IISCO), a subsidiary of Steel Authority of India Ltd, with its state-run parent, will help the combined company become bigger and stronger, Steel Minister Ram Vilas Paswan said.
The merger, which was approved by the federal cabinet in June last year, became effective on Feb 16.
"The merger of IISCO with SAIL is in line with the global trends to achieve size, scale, integration and greater financial strength and stability," Paswan told reporters on Saturday.
IISCO, which has a steel plant in the eastern state of West Bengal, has seen its performance get hit by old plant and machinery, obsolete technology and lack of capital. The company, which makes hot metal, crude and saleable steel, posted a loss of Rs 250 million in the 9-months ended December 2005.
It is set to undergo an expansion to raise its hot metal production capacity.
SAIL posted a net profit of Rs 6.85 billion in the three months ended Dec 31, 2005.