Iisco merges with SAIL

New Delhi, Feb 16 | Updated: Feb 17 2006, 05:30am hrs
Burnpur-based Indian Iron & steel Company (Iisco) has finally merged with its parent company Steel Authority of India Ltd (SAIL). The merger will add strength to the public sector unit that is already the countrys largest steel producer.

The ministry of company affairs on Wednesday issued the final order approving Iiscos amalgamation with SAIL. While the amalgamation is effective with immediate effect, the accounts of Iisco would be consolidated with SAIL from April 1, 2006.

The trend in the industry world over has been towards merger and consolidation leading to creation of greater value for stakeholders. Iiscos merger with SAIL will help the company to build better synergy resulting in faster growth of the company, SAIL chairman VS Jain said in a company release.

After the merger, SAIL now has five integrated steel plants under its fold, with total steel production capacity increasing marginally by 0.85 mt (million tonne) to 14.85 mt. It plans to increase its total hot metal production capacity to 22.5 mt by 2011-12. The company would be investing Rs 8000 crore for the expansion of Iisco, whose production capacity is set to increase to 2.5 mt by 2011-12.

The merger will also enable SAIL access rich iron ore reserves of Iisco at Chiria mine area in Jharkhand.