The Centre on Wednesday scrapped the privatisation of Visvesvaraya Iron & Steel Plant Limited (VISL), Bhadravathi, due to insufficient bidder interest.
"Multiple Expression of Interests (EoI) had been received and qualified bidders had conducted due diligence. However, due to insufficient bidder interest in proceeding further with the transaction, Government of India, with the approval of Alternative Mechanism (Empowered Group of Ministers) has decided to annul the EoI and thereby terminating the present transaction," the Department of Investment and Public Asset Management (DIPAM) in a statement said.
The Cabinet had in October 2016 cleared strategic disinvestment of SAIL's 100 per cent stake in Visvesvaraya Iron & Steel Plant Limited (VISL), Bhadravathi – A Unit of SAIL.
Following that, the Expression of Interest (EoI) from bidders was invited in July 2019, said the statement.
Earlier, when the government invited EoI, VISL Workers Association opposed this and urged the government to stop the move and revive the plant.
Even former chief Minister B S Yediyurappa and Shivamogga Lok Sabha member B Y Raghavendra have been demanding the Centre to drop the proposal of privatisation and requested to revive the plant. .
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