No selloff, SAIL unit to get cash infusion

The Union steel ministry is preparing to infuse more than ₹400 crore into Salem Steel Plant, the stainless-steel unit of the Steel Authority of India Ltd (SAIL), marking a sharp policy turn from its earlier intent to privatize the loss-making mill, according to two senior ministry officials.

- Dipali Banka & Abhishek Law

The move signals a broader shift in the Centre's approach to distressed public-sector steel assets. Instead of pushing strategic units to the disinvestment block, the government is increasingly opting for state-led revival plans, an approach already visible in the ₹11,440 crore rescue crafted for Rashtriya Ispat Nigam Ltd (RINL) earlier this year.

The renewed push for revival over sales signals a shift toward restructuring and stabilizing key steel units instead of offloading them-or preparing them for a sale only after a turnaround. Job-loss concerns tied to privatization continue to be a politically fraught issue in any disinvestment debate.

The Salem plant, located in Tamil Nadu's Salem district, is currently running at less than 100,000 tonnes per annum, which is 25% below its installed capacity of 360,000 tonnes per annum, one of the two officials cited above said.