Centre shortlists bidders for executing Vizag Steel Plant disinvestment

In a significant stride, towards materialising the Central Government’s decision to privatise the Visakhapatnam Steel Plant (VSP), it has now shortlisted bidders for executing the 100 percent strategic disinvestment of the plant in Vizag. 

Reportedly, the Department of Investment and Public Asset Management (DIPAM), Finance Secretary, Rajesh Kumar received seven bids for legal advisors and five for transaction advisors. In the pre-qualification meeting, of the seven bids received for legal advisors, five have been shortlisted. All the applications for transaction advisors have been shortlisted. 

The five shortlisted bidders for legal advisor for the disinvestment of the steel plant in Vizag are Chandhiol and Mahajan (New Delhi), Economic Laws Practice (ELP), J Sagar Associates(Gurugram), Kochhar and Company(New Delhi), and Link Legal (New Delhi). The five shortlisted bidders for technical advisor are Deloitte Touche Tohmatsu India LLP (DTTLLP), Ernst and Young LLP, JM Financial Limited, (Mumbai), RBSA Capital Advisers LLP, MSME-Small, and SBI Capital Markets Ltd. These shortlisted firms will present their technical proposal before the selection committee on 30 September, 2021. 

Earlier, DIPAM, which is undertaking the execution works of the steel plant privatization, had floated a document that the government would appoint one transaction advisor from reputed merchant bankers or consulting firms. This advisor will be responsible for providing advisory services to DIPAM and manage the strategic disinvestment of the Government’s stake in RINL, along with RINL’s stake in its subsidiaries/joint ventures. The document also said that a law firm as a legal advisor for facilitating transactions would be appointed.

While the notification initially said the last date for submitting Request For Proposal (RFP) would be 28 July, 2021, this deadline was extended several times. Initially, the deadline was extended till 17 August, 2021. Subsequently, it was further extended to 26 August, 2021.