The Rashtriya Ispat Nigam Ltd has put on hold its earlier proposal to hive off the captive power plant of 247.5 mw at its Visakhapatnam Steel plant.
According to the Nigam's chairman and managing director B N Singh, the proposal has been put off pending a decision by the Union cabinet on the privatisation of the steel plant itself.
The Disinvestment Commission, in its 12th and last report, had suggested a 51 per cent divestment in the ailing steel plant. A decision by the Union cabinet on the matter is awaited.
A T Kearney, appointed by the steel plant as consultants to draw up a turnaround plan, had recommended that Rashtriya Ispat focus on the business of steel making. It suggested spinning off all non-core subsidiaries such as the power plant.
Rashtriya Ispat then contemplated making the power plant a subsidiary company.
