RINL privatisation Employees getting ready for indefinite shutdown after March 25

Visakhapatnam: THE employees and the trade unions of Rashtriya Ispat Nigam Limited (RINL), who are taken aback with the sudden announcement of its sale to private companies, are now seething with anger and getting ready for an indefinite shutdown anytime after March 25 even as the Centre has gone on record admitting that non-allotment of captive mines was one of the main reasons for the losses incurred by the Navratna company.

"The decision is quite ridiculous. Successive governments have failed in considering the need for raw material security. We are incurring high production costs as we don't have captive mines unlike other major steel manufacturers. Now all the employees, contract workers, displaced persons, our families and stakeholders are united. We will revive another agitation on the lines of Visakha Ukku Andhrula Hakku to prevent privatisation," J Ayodharam, Visakha Ukku Porata Parirakshana Committee chairman J Ayodhyaram told Bizz Buzz.

Union Steel Minister Dharmendra Pradhan in response to a question by YSRCP MP V Vijayasai Reddy informed the Parliament that lack of captive mines was one of the factors amongst other reasons for losses incurred by RINL. RINL has requested various State Governments viz. Odisha, Chhattisgarh and Andhra Pradesh for recommending reservation of iron ore deposit under section 17A(2A) of MMDR Act, 2015 to the Ministry of Mines.

He stated that the Ministry of Steel had also requested the Government of Odisha for reservation of an iron ore block in favour of RINL. It may be recalled here that the BJD Government in Odisha had been insisting on investment in their State as a pre-condition for allotting mining blocks to any corporate.

The country's first shore-based steel plant was set up after an agitation spearheaded by students and elected representatives in undivided Andhra Pradesh claiming the lives of 32 persons in separate police shootout forcing then Prime Minister Indira Gandhi to concede the demand in 1971.The Cabinet Committee on Economic Affairs at its meeting on January 27 accorded 'in-principle' approval for 100 per cent disinvestment of Government of India shareholding in RINL along with the company's stakes in its joint ventures and subsidiaries by way of privatisation.

The steel plant was established with an initial investment of Rs 4,890 crore by acquiring 22,000 acres from nearly 25,000 farmers.

It made a turnaround after the Centre during the tenure of Vajpayyee-led government bailed it out from falling in BIFR net by granting capital restructuring. The company is now in debt trap due to Rs 16,300 crore- investment made in capacity augmentation from three to 7.3 million tonne. RINL's loan liability has mounted up to Rs 22,000 crore as against assets of Rs 32,000 crore as estimated by the Government of India.

After the Centre's decision for disinvestment, RINL management has proposed to monetise 22 acres under its possession in the heart of the city to mop up Rs.1,000 crore. Former IAS officer VV Lakshminarayana and retired CMD of RINL Y Siva Sagar Rao have suggested the sale of company's forged wheel plant in Rae Bareli in UP to mobilise Rs 5,000 crore and sell a part of its surplus lands near the steel plant to raise Rs 9,000 crore to contribute to the Rs1.75 lakh target set for disinvestment during 2021-22 Budget.

All the trade unions as well as Chief Minister YS Jagan Mohan Reddy have been demanding conversion of loans into equity as a way out to prevent sale of RINL.