Centre’s nod for strategic divestment of Salem Steel Plant

The SSP, a special steel unit of state-run SAIL, pioneered the supply of wider width stainless steel sheets and coils in the country. “The government has accorded in-principle approval of strategic disinvestment of SSP in Salem district of Tamil Nadu,” Minister of State for Steel Vishnu Deo Sai said in a written reply to the Lok Sabha. SSP is a loss-making unit of Maharatna firm SAIL, he added. “It has been consistently making losses for the last 5 years despite investment of around Rs 2,200 crore by SAIL under the modernisation and expansion project,” the minister said. 

The Salem plant can produce austenitic, ferritic, martensitic and low-nickel stainless steel in the form of coils and sheets with an installed capacity of 70,000 tonnes per annum in cold rolling mill as well as 3.64 lakh tonnes a year in hot rolling mill. Its steel melting shop can produce 1,80,000 tonnes of slabs per annum. Besides, the plant has the country’s first top-of-the-line stainless steel blanking facility with a capacity of 3,600 tonnes per year of coin blanks and utility blanks/circles. 

Earlier when the government was contemplating the move divest the SSP, a host of political leaders, like M Karunanidhi and Vaiko, from Tamil Nadu opposed it. DMK leader M Karunanidhi said former chief minister C N Annadurai had wanted to set up a steel plant in Salem. 

In a statement issued then, the Dravidian patriarch said that the plant it offered direct employment to 25,000 people and indirect employment to more than 5,000 workers and pointed out that right from its inception year the SSP has been making profit. MDMK general secretary, Vaiko, opposing the move said that the Centre should do away with its plan of disinvestment of SSP. He also called for serious efforts by the state to stop the move citing the victory in the NLC in the past when the Centre dropped disinvestment.