State-run steel maker Steel Authority of India Ltd (SAIL) is shutting down two of its subsidiaries located in Uttar Pradesh and Jharkhand.
"SAIL has initiated actions for closure/exit from certain JV companies as well as subsidiaries which are either non-performing or non-operational. The closure action for two subsidiary companies viz Steel Authority of India Jagdishpur Power Plant Limited and Steel Authority of India Sindri Projects Limited under Fast Track Exit Mode is in progress," the company said a report.
The two subsidiary companies have filed an application for closure under Fast Track Exit Mode as per provisions of Section 248(2) of the Companies Act, 2013 and Rule 4 (1) of the Companies (Removal of Names of the Companies from the Register of Companies) Rules, 2016.
However, SAIL did not provide any financial details of these units.
"SAIL Jagdishpur Power Plant Limited, incorporated for setting up of gas-based power plant at Jagdishpur and SAIL Sindri Projects Limited, incorporated for the revival of Sindri unit of Fertilizer Corporation of India Limited has not taken off and are under closure.
"Closure of Steel Authority of India Jagdishpur Power Plant Limited and Steel Authority of India Sindri Projects Limited through Fast Track Exit Mode has been filed with the Ministry of Corporate Affairs," the report said.
Another Steel Authority of India subsidiary IISCO-Ujjain Pipe and Foundry Company Limited, Kolkata is already under liquidation.
SAIL also has two other subsidiaries -SAIL Refractory Company Limited at Salem in Tamil Nadu and Chhattisgarh Mega Steel Limited at Bhilai in Chhattisgarh. SAIL, under the Ministry of Steel, is the country's largest steel-making company with an annual capacity of over 21 million tonnes per annum (MTPA). As on March 31, 2019, the company had borrowings of Rs 45, 170 Crore.