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Steel Authority of India Ltd (SAIL), a government of India enterprise and one of the largest profit-making public sector steel products manufacturing company in India, is set to take over the sick Malvika Steel on February 27.

The 0.85-million tonne steel plant, which has been engaged in the manufacture of finished rolled steel products and pig iron, located in Jagdishpur, Uttar Pradesh, was floated by Vinay Rai-controlled Usha Group in 1998, and has had a rough sailing so far. After running into financial trouble, the unit was handed over to the Board for Industrial and Financial Reconstruction (BIFR) and was then auctioned by the Debt Recovery Tribunal to Jaypee Associates at Rs 207 crore, which outbid SAIL's offer price.

However, Jaypee's efforts to run it also got engulfed in controversy, following which the matter was put up before the appellate tribunal, which again invited bids from interested parties. As a consequence, the state-run steel behemoth was back in the fight and finally wrested the deal in its favour.

The plant, located on 740 acre at Jagdishpur in Amethi, Rahul Gandhi's constituency, will be formally taken over at a grand function on February 27, in which both the minister for steel and mines Ram Vilas Paswan and minister of state for steel, Jitin Prasad, are expected to be present, along with Congress MP Rahul Gandhi.

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