Why India146;s biggest steel maker can146;t shop big overseas

Union minister for Steel Ramvilas Paswan, however, is all for Sail pursuing acquisitions abroad 8211; though he does not have an answer to the policy roadblocks just yet. 8220;We have given full freedom to Sail to pursue acquisitions abroad and understand that consolidation is necessary for survival in the global arena. While we are undertaking domestic mergers Neelanchal Ispat Nigam Ltd, we are open to overseas acquisitions should an opportunity present itself,8221; Paswan said.

The irony cannot be more pronounced. At a time when the steel industry is witnessing large scale consolidation and big ticket acquisitions like Arcelor-Mittal and Tata-Corus are the order of the day, Sail remains grounded. 8220;As a PSU we cannot over-reach ourselves. Tata as a private company can go ahead and buy a company thrice its size but we have limited freedom on acquisitions beyond the Rs 1,000 crore ceiling,8221; said Sail chairman S.K. Roongta.