Calcutta, January 24: Russian government's decision on modernisation of ailing Indian Iron & Steel Co (Iisco), a wholly-owned subsidiary of Steel Authority of India Ltd, will be conveyed to the Indian government before the end of March this year, according to steel secretary AK Basu.Russian company Tyazhpromexport is expected to be an equity partner of SAIL to take up a Rs 800-crore modernisation programme using rupee-rouble escrow funds for Iisco, now under BIFR.
Basu told `The Financial Express' that the Indian side had insisted during the Indo-Russian Commission meet earlier this month that the Russian government should convey their decision by February. However, the Russians requested for some more time. "When it was pointed out that the BIFR had fixed March 31 as the deadline for submission of Iisco revamp package, they agreed to take a positive decision before the deadline," he said.
Meanwhile, steel minister Dilip Roy is scouting for another partner in case the Russians decide to opt out ofIisco modernisation programme. A leading Chinese steel company is learnt to have shown interest in Iisco and they have been asked to visit the plant. A senior steel ministry official said in case the Russians fail to take up a positive decision, a new international tender could be floated to find out prospective partner for modernisation of the plant.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.