RINL Still On Disinvestment List!

I wanted to know whether decision by CCEA in Jan 2021 for 100% disinvestment of RINL has been withdrawn. Under RTI, I requested for a copy of direction by the competent authority on withdrawal of the decision if it had been taken. The reply by DIPAM said as on date, there is no change in decision taken by the CCEA - Padi Trinadha Rao, a retired employee and union leader, RINL, tells Bizz Buzz

Visakhapatnam: A brief reply by the Ministry of Finance to an application filed under the Right to Information (RTI) Act by a trade union leader and retired employee of Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP) on withdrawal of privatisation of the company after announcement of Rs14,440-crore revival package, has created a flutter among employees’ circles here.

In the reply, it has been clarified that there is no change in the stand on disinvestment of RINL. The reply has come from the Department of Investment and Public Asset Management (DIPAM) in response to the clarification sought by union leader Padi Trinadha Rao. Incidentally, this has come notwithstanding the emphatic ruling out of privatisation on July 12 last year by Union Steel and Heavy Industries Minister HD Kumaraswamy and Union Minister of State (MoS) holding same portfolios Bhupathiraju Srinivasa Varma, who represents BJP from Bhimavaram (Andhra Pradesh) after a visit to the steel plant.

Trinadha Rao told Bizz Buzz that he received reply twice from the DIPAM the latest dated March 25 stating that there is no change in the decision taken by DIPAM. In his application, he wanted to know whether the January, 2021, decision by the Cabinet Committee on Economic Affairs (CCEA) for 100 per cent disinvestment of RINL has been withdrawn. He wanted a copy of direction by the competent authority on withdrawal of the decision if it had been taken. The reply by DIPAM said as on date, there is no change in decision taken by the Cabinet Committee on Economic Affairs.

The trade unions and officers’ body Steel Executives’ Association (SEA) have been fighting for a long time for merger of SAIL-RINL. However, the request has been bulldozed on multiple occasions as under the present circumstances, it is not viable for anyone to take over RINL with such a huge net loss.

The Ministers had stated that at the time of clearing the revival package, RINL had incurred a debt burden of a whopping Rs35,000 crore due to heavy capital expenditures, interest liability and dues owed by it to the vendors. Now, the thrust is on improving on financial front by operating all the three blast furnaces so as to increase its credit rating.

However, the Ministry of Steel recently stated in a release that the Government of India has approved infusion of Rs11,440 crore as equity/ preferential capital in RINL, to sustain the operations of RINL and to keep it as a going concern.

The company has focused on improvement in techno-economic performance, better capacity utilization and rationalization of fixed costs etc., to enhance operational efficiency. This aligns with the objectives of National Steel Policy-2017, Union Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma clarified in a written reply in the Rajya Sabha.