This is the first time that the Congress-led UPA government has ventured into full fledged privatisation of a loss-making PSU.
“The Cabinet decided to revive SIL. It is being proposed to revive the company through induction of strategic partner by off loading the entire government equity of around 95 per cent,” the Information and Broadcasting Minister Ambika Soni said.
The remaining 5 per cent of stake of the SIL will remain with banks, financial institutions, corporate bodies and others. Recently the Heavy Industries Minister Praful Patel while advocating for outright sale of closed PSUs had suggested that the sick SIL could be considered for complete privatisation.