Strife-scarred Libya wants SAIL help to run key steel plant - Indian Express
Seeking to re-build its conflict-ravaged infrastructure, Libya is understood to have sought the help of Steel Authority of India Ltd (SAIL) to run one its key steel plants.
The output in the three-million-tonne plant in Misurata province, owned by the government's Libyan Iron and Steel Company, has been badly hit by the war, and needs cash infusion and a tech upgrade.
SAIL, which has been scouting for low-cost assets worldwide, is learnt to be interested in the proposal to overhaul, operate and maintain the plant. Sources said Libya may extend certain concessions in return.
The steel ministry is reportedly in favour of government-to-government negotiations before giving SAIL the go-ahead. Enthused after winning the bid to explore the Hajigak iron ore mines in Afghanistan, SAIL is expected to begin initial due diligence for Libya after it gets the go-ahead.
SAIL chairman C S Verma declined to confirm the proposal, but said: "SAIL is willing to explore the possibilities of carrying out operations and modernisation exercise wherever it gets any opportunity."
According to sources, the PSU hopes to source natural gas at cheaper rates from either Nigeria or from one of the Gulf states for the Libya plant. It inked an initial pact with Oman Oil Company in November to jointly set up a 3 MT integrated gas-based steel plant in Oman for an investment of around Rs 15,000 crore.
The rising demand for steel in Libya and nearby Nigeria owing to a boom in construction of oil exploration and storage facilities as well as pipelines means that a ready market exists, allaying apprehensions of an inventory build-up.
Seeking to re-build its conflict-ravaged infrastructure, Libya is understood to have sought the help of Steel Authority of India Ltd (SAIL) to run one its key steel plants.
The output in the three-million-tonne plant in Misurata province, owned by the government's Libyan Iron and Steel Company, has been badly hit by the war, and needs cash infusion and a tech upgrade.
SAIL, which has been scouting for low-cost assets worldwide, is learnt to be interested in the proposal to overhaul, operate and maintain the plant. Sources said Libya may extend certain concessions in return.
The steel ministry is reportedly in favour of government-to-government negotiations before giving SAIL the go-ahead. Enthused after winning the bid to explore the Hajigak iron ore mines in Afghanistan, SAIL is expected to begin initial due diligence for Libya after it gets the go-ahead.
SAIL chairman C S Verma declined to confirm the proposal, but said: "SAIL is willing to explore the possibilities of carrying out operations and modernisation exercise wherever it gets any opportunity."
According to sources, the PSU hopes to source natural gas at cheaper rates from either Nigeria or from one of the Gulf states for the Libya plant. It inked an initial pact with Oman Oil Company in November to jointly set up a 3 MT integrated gas-based steel plant in Oman for an investment of around Rs 15,000 crore.
The rising demand for steel in Libya and nearby Nigeria owing to a boom in construction of oil exploration and storage facilities as well as pipelines means that a ready market exists, allaying apprehensions of an inventory build-up.
