Help Desk -
9958816305, 9810335381
Email
Password

SAIL Malvika Steel in Amethi Turns Idle - CAG

Steel News - Published on Tue, 10 Dec 2019

Image Source: Malvika Steel
IANS reported that the latest report of official auditor Comptroller and Auditor General presented in Parliament has highlighted the fact that Steel Authority of India Ltd 's acquisition of the Uttar Pradesh based Malvika Steel turned idle investment soon after and the PSU lost its entire investment of INR 366 crore made to revive the sick entity. CAG has said SAIL acquired plant and machinery for INR 44.35 crore but all of it became idle and scrap. A committee constituted to recommend the utilisation and disposal of these idle assets found in November 2015 that most of the items were lying idle since 1998 and were scrap in nature and not fit for revival for any of the units. The condition of the materials was deteriorating with the passage of time and there was a dense growth of bushes all around. Further, there may have been loss of material due to theft.

The Committee further recommended that the items may be put up to the Apex committee for declaring them idle assets.

In 2009, SAIL acquired the assets of erstwhile Malvika Steel Limited, closed since 1998, consisting of 739.65 acre land and plant & machineries for INR 226.67 crore. It invested INR 93.75 crore to convert the facility to a steel processing unit. CAG has noted that SAIL management installed a TMT bar mill, Crash Barrier mill and GC mill but failed to start production from the Steel Processing unit even after lapse of three to eight years from their installation. The TMT bar mill though completed in October 2014 was no operationalised because funds, raw materials and equipment required to start production were not provided.

Source :

Posted By : Arun Huidrom on Tue, 10 Dec 2019
Related News from Steel segment