RINL union firm on stalling valuation team visit

Visakhapatnam: While declaring its resolve to prevent any bid for valuation of the assets and liabilities of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, the union which recently received recognition as the recognised union, declared that it under no circumstances, will allow any prospective bidder or their representative to enter RINL compound to assess value of its properties.

AITUC leader and recognised union general secretary D Adinarayana, told Bizz Buzz in an interview that there is a conspiracy hatched at the highest level to sell away RINL and its joint ventures and subsidiaries at a throwaway price. "Come what may, all our unions are united in opposing the bid to hand over RINL on a golden platter to private investors," he declared.

Adinarayana, who is also the co-chairman of Visakha Ukku Parirakshana Porata Samiti (VUPPC), recently submitted a representation to RINL Chairman-cum-Managing Director Atuil Bhat and Director (Finance) VV Venugopal Rao tender resignation from the select committee constituted by the Department of Investment and Public Asset Management (DIPAM) to expedite valuation of RINL's assets and liabilities.

Despite the uncertainties faced by the Visakhapatnam headquartered company following the January 27, 2021 decision by Cabinet Committee on Economic Affairs for strategic disinvestment of RINL by way of 100 per cent selling away of Government of India shareholding along with management control by way of privatisation, it could achieve profit before tax (PAB) of Rs 835 crore in 2021-22.

RINL is the only public sector unit which is deprived of captive iron ore and coal mines. This has led to curtailing of its production by shutting down one or two blast furnaces thereby affecting its overall performance during the new financial year, Adinarayana said pointing out that during 2022-23, the company is poised to incur heavy losses going by the current trends mainly in the wake of severe coal shortage as a sequel to Russia-Ukraine war. The power curbs imposed in the past few days also had an adverse impact on RINL's steel production, he pointed out. Visakhapatnam Steel Plant has an annual capacity to produce 7.3 million tonnes.

In addition to a resolution adopted in the Assembly, Chief Minister YS Jagan Mohan Reddy wrote a couple of letters to Prime Minister Narendra Modi to withdraw the decision on disinvestment, grant captive mines to reduce production cost significantly, explore IPO route to infuse funds for capacity augmentation and monetisation of surplus lands to mop up funds.

However, the main Opposition TDP as well as the Left parties and Tollywood star-led Jana Sena Party came down heavily on YSR Congress Party for not taking a firm decision to exert pressure on the NDA Government to rollback its decision to privatise RINL as it is symbol of "Pride for Telugu people." The steel plant was established after the 'Visakha Ukku Andhrula Hakku' agitation which claimed the lives of 32 protesters in police firing at various places.

Telangana Minister for IT and Industries KT Rama Rao had also declared his party's support to agitation being spearheaded by the trade unions against RINL privatisation declaring that if required he will visit Visakhapatnam to extend his support to the protestors. "Telangana Rashtra Samiti led by our Chief Minister K Chandrasekhara Rao is totally opposed to privatisation of public sector units as there is risk that tomorrow the Narendra Modi-led government might sell our PSUs like Singareni Collieries," he was quoted as saying.

RINL is the only public sector unit which is deprived of captive iron ore and coal mines. This has led to curtailing of its production by shutting down one or two blast furnaces thereby affecting its overall performance during the new financial year

— D Adinarayana, AITUC leader and recognised union general secretary