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May 29, 2001
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Money > Business Headlines > Report May 29, 2001 |
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Private steel firms' merger plan a myth: MinistrySwati Prasad The steel ministry has denied that there is any proposal pending approval of the ministry from financial institutions to merge four private steel companies -- Essar Steel, Jindal Vijaynagar Steel, Ispat and Lloyds Steel. "There is no such proposal being discussed by the ministry," A K Aggarwal, secretary, ministry of steel, said. Aggarwal went on to add that he is not aware of any such proposal having been mooted by the institutions. The secretary was reacting to reports that financial institutions who have a large exposure to the steel industry, have floated a proposal to merge the four companies into a single corporate entity. As per the news report, this proposal has been modelled on the lines of the UK-based British Steel, where smaller sick steel units were merged with the state-owned steel firm. "If four private steel companies want to merge in order to form a new corporate entity, they do not require the approval of the steel ministry," Aggarwal said. Naveen Jindal of the Jindal group said that no financial institution has approached the group with the proposal to merge any of the group companies with Ispat, Essar or Lloyd Steel. "We are doing very well. Three of our group companies -- Jindal Steel and Power, Saw Pipes Ltd and Jindal Strips Ltd -- are posting very healthy profits," Jindal said adding: "None of the group companies is defaulting on loans. I don't see why financial institutions should moot such a proposal involving the Jindals," he said. Powered by YOU MAY ALSO WANT TO READ:
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