Salem: Union Minister of State for Steel Braja Kishore Tripathy, on May 11, said that the Centre would take a decision on the strategic partner for the Salem Steel Plant, keeping in mind the overall prosperity of employees, the company and the region.

Speaking at the review meeting of the plant, the minister said the move for backward integration and expansion was in keeping with the original master plan for the plant. As and when the need arose, it would have to be essentially funded with a strategic partner.

He said it was distressing to note that the plant had not been doing well in the past, both in financial and physical terms. The gross margin was negative and capacity utilisation was a mere 36 per cent.

Stating that the forces of globalisation and free market were changing the face of business, he said the problems of the industry had to be seen in this context.

Widening of the product mix in terms of quality, newer applications of stainless steel and flexibility to cater to different market segments was vital for the plant's survival.

Provision of a captive facility to produce quality stainless steel slabs at controlled cost would be essential for the long-term viability of the plant. With this idea, the formation of a joint venture company around the facilities of the plant was approved by the government, since further investment in Salem would not be possible for SAIL, he said.

PTI