State-owned steel major Steel Authority of India Ltd (SAIL) has acquired the defunct Malvika Steel for Rs 209 crore. At one point of time world's number one steel company ArcelorMittal was chasing behind the perennially sick company. Talking on this occasion minister of steel Ramvilas Paswan said that, there has been no impact of the recession on public sector steel companies though private sector units are facing problems of liquidity. Paswan further said that, acquisition of Malvika Steel is a case in this direction.

 

Paswan also told that, this is the best time to expand and invest for those PSUs having funds like SAIL and National Mineral Development Corporation. Malvika Steel has a 0.85 million tonne integrated steel plant spread over 740 acre in Amethi. The plant was shut down in 1998 after only three years of initial operation. The steel plant was floated by Vinay Rai-controlled Usha Group in 1998 but ran into financial trouble thereafter.

 

The bidding process was completed on February 20.  In the bidding SAIL outbid Jaypee Group by Rs 1 crore. As recorded on March 2008, SAIL had surplus cash of Rs 13,759 crore on its balance sheets. The PSU is working hard on a plan for investment in expansion of its existing capacity.