Unions decide to put up united fight
The decision on RINL was taken on January 27 last; though CCEA had approved the sale of equity in NINL, FSNL, Nagarnar Steel Plant and other steel plants belonging to SAIL in 2016, so far there is no progress due to stiff opposition, legal issues and other factors
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Visakhapatnam: PROMINENT trade union leaders say even if the BJP-led NDA Government decides to bulldoze groundswell of support against privatisation of Rashtriya Ispat Nigam Limited, the strategic sale of the company will take a lot of time.
Going by the past experience, they feel that as long as they stand united, no buyer will come forward to purchase RINL, the corporate entity of Visakhapatnam Steel Plant with a production capacity of 7.3 million tonne.
Though the decision for disinvestment of Neelachal Ispat Nigam Limited (NINL), which has 1.1 million tonne integrated steel plant with captive mines in Odisha was taken a year ago, the expression of interest was issued on January 25 last.
Neelachal Executive Association general secretary Ajit Kumar Pradhan told Bizz Buzz on Thursday that the government wanted to go for a two-stage auction procedure. First it will select the bidders through a technical evaluation and later sign a Share Purchase Agreement with a prospective bidder and subsequently conduct a due diligence study on assets and liabilities.
Odisha Government PSUs namely Odisha Mining Corporation (OMC) and Industrial Promotion and Investment Corporation of Odisha (IPICOL) have 20.47 per cent stake in NINL. Central PSUs MMTC, NMDC, BHEL and Mecon are the other shareholders.
The employees of NINL have been insisting on the merger of their company with RINL to give the latter the much-needed raw material security.
The Ministry of Finance recently informed MP Sasmit Patra that the Cabinet Committee on Economic Affairs (CCEA) cleared strategic disinvestment of NINL on January 8, 2020, NMDC integrated steel plant at Nagarnar (Chattisgarh) on October 27, 2016 (modified on October 14, 2020), Ferro Scrap Nigam Limited (FSNL), subsidiary of MSTC Ltd and Alloy Steel Plant, Durgapur, Visvesvaraya Iron & Steel Plant, Bhadravathi and Salem Steel Plants (units of SAIL) on October 27, 2016.
"The decision on RINL was taken on January 27 last; though CCEA had approved the sale of equity in NINL, FSNL, Nagarnar Steel Plant and other steel plants belonging to SAIL in 2016, so far there is no progress due to stiff opposition, legal issues and other factors," Pradhan pointed out.
Prominent union leaders of VSP whom this reporter contacted, CITU State president Ch Narsinga Rao, AITUC national vice-president D Adinarayana and BMS national vice-president M Jagadeeswara Rao said selling a huge company like RINL would not be an easy affair. They said they would fight unitedly under the banner Ukku Parirakshana Porata Samiti to save RINL from privatisation as the steel plant was established after an agitation in AP and Telangana which claimed 32 lives in police firing.
The CCEA has approved 100 per cent disinvestment of Government of India shareholding in RINL along with the company's stake in joint ventures/subsidiaries through strategic sale by way of privatisation.
RINL clocked a turnover of Rs 10,059 crore in 2015-16, Rs 12,317 crore in 2016-17, Rs 14,459 crore in 2017-18, Rs 20,338 crore in 2018-19 and Rs 15,819 crore in 2019-20.
The gross block of property, plant and equipment and intangible assets is estimated at Rs 32,022 crore as on December 31, 2020 as against outstanding debts of Rs 21,236 crore. It is facing a severe cash crunch due to investment of Rs 16,300 crore made in capacity augmentation and modernisation entailing a huge interest liability.
Union Finance Minister Nirmala Sitharaman recently said while deciding the terms and conditions of the strategic sale, the legitimate concerns of the existing employees and other stakeholders will be suitably addressed through appropriate provisions made in the Share Purchase Agreement.
RINL unions serve strike notice
Visakhapatnam: VISAKHA Ukku Parirakshana Porata Committee, formed by various trade unions, on Thursday served a notice on the management of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, to go on an indefinite strike after March 25 demanding withdrawal of the decision for 100 per cent sale of government shareholding in the Navratna Company. Representatives of various unions, which included CITU leader and recognised union president J Ayodhyaram handed over the notice under various sections of the Industrial Disputes Act, 1947 to Y Balaji, Executive Director (HR).
The notice sought scrapping of Inter-Secretariat Group constituted to study the strategic sale, MoU signed with Posco for a joint venture on October 23, 2019, suspend recently signed NBCC on redevelopment and monetisation of land parcels at Maddilapalem and provide permanent employment to all rehabilitation (R) card holders, whose families surrendered their lands for establishment of the steel plant.
AITUC leader D Adinarayana and Visakha Steel Employees' Congress general secretary Mantri Rajasekhar said they would completely paralyse the production of the steel plant if the Centre did not concede their demand for withdrawal of the decision to privatise RINL.
