NEW DELHI, APR 16: Steel Authority of India Ltd (SAIL) has offered majority stake in its wholly-owned subsidiary Indian Iron and Steel Company (IISCO).In a global tender floated by the company last week, Sail has invited bids from the domestic and overseas companies for divesting stake in IISCO.The Industrial Development Bank of India (IDBI) and Corporate Advisory Services Department (CASD) have been appointed as global consultants for the disinvestment process.The interested parties, according to sources, should have an annual turnover of Rs 500 crore in any of the preceding three years.This is just a preliminary bid called `expression of interest' and disinvestment in IISCO is a part of business restructuring approved by the government in February this year.The equity capital of IISCO as on March 31, 1999 stood at Rs 387.7 crore, sources said but refused to indicate the amount the company was expected to generate through sale of stake in IISCO.Russian steel company Tyazhpromexport (TPE) had earlier asked for time till March 31, 2000 for seeking permission from the Russian government for using rouble-rupee account for reviving IISCO.Sail sources said any global company including TPE would have to go through global bidding again for acquiring stake in IISCO.The Indian government had waived off all loans and interest thereon given to sail for IISCO as part of financial and business restructuring package approved by it in February, thereby making IISCO's balance-sheet clean.Sail had earlier said that seven of its ventures would be divested to retire part of its over Rs 12,000 crore debt as part of its business strategy to emerge out of the red.The corporation, which posted over Rs 2000 crore losses during April-December 1999, has prepared a blueprint for sell-off and set up a high-powered board sub-committee to restructure business activities comprising four integrated steel plants, IISCO and other non-core activities.According to sources, Sail is expecting to mop up about Rs 8,000 crore through disinvestment of non-core activities including IISCO over a period of four years.Sail officials, when contacted, said it was difficult to give an estimate of the value of activities slated for sell-off saying it was too early to project the proceeds.
