"Two international steel producers have got in touch with us for partnering on restructuring and modernising our Salem steel plant. It could be through equity participation but we have yet to work out the details," SAIL chairman and managing director Arvind Pande said. He said Nissho Iwai-Nippon Metal Industries of Japan and Avesta Sheffield of United Kingdom had contacted the corporation and offered a restructuring plan with the installation of a `steel making shop' at the Salem plant.

He, however, said that SAIL was in favour of rejuvenating the loss making unit by converting it into a joint venture while retaining majority stake in it. The SAIL management has approached the government for permission to hive off its Salem plant as part of its restructuring plans to turnaround the loss making company.

Pande said thatthe two companies had offered to bring machinery for the purpose as part of their stakes in the project and this could help Salem produce steel slabs to give it a much-needed boost for turning the corner. SAIL officials, however, declined to give details of the financial performance of the Salem plant.

Setting up of a steel making shop (SMS) at Salem, which already has hot rolling (HR) and cold rolling (CR) mills, would require an investment of about Rs 200 crore, Pande said. "Though the valuation of assets of the plant is much more, we are ready to accept the required investment. In the bargain, it will help the economics of Salem," he added. Salem Steel Plant has been producing high quality stainless steel and exports up to 50 per cent of its produce.

SAIL would soon finalise the merchant bankers for the purpose of selecting the foreign partner, Pande said, adding that process of selecting the partner would be similar to what has been followed for the proposed hiving of power plants of SAIL.

A jointventure partner has to have global standing in quality steel production and adequate experience in international marketing, Pande said adding that a global tender would be floated soon after selecting merchant bankers.

For the proposed hiving of power plants SAIL had floated information memorandum for inviting partners.