RINL privatisation: Convert loans into equity, suggests AITUC
AITUC general secretary D Adinarayana on Monday asked Prime Minister Narendra Modi to grant capital restructuring of Rashtriya Ispat Nigam Limited by converting loans into equity and provide it much needed raw material security to put it back on the track.
image for illustrative purpose
Visakhapatnam: AITUC general secretary D Adinarayana on Monday asked Prime Minister Narendra Modi to grant capital restructuring of Rashtriya Ispat Nigam Limited by converting loans into equity and provide it much needed raw material security to put it back on the track.
In a letter, he said the company set up after 'Visakha Ukku Andhrula Hakku' agitation, had a committed workforce at Vizag Steel Plant. The plant's initial construction and commissioning was completed in two and half years (1989-91).
It is also to be noted that the plant has bounced back after becoming sick unit and referred to BIFR with the committed contribution and efforts of the workforce turnaround was achieved within a period of two and half years during 1998-2001.
"It may recalled that in 2013 when Kiran Kumar Reddy was the Chief Minister of Aandhra Pradesh, RINL management and State government of the combined State had declared that the land with VSP had the potential to attract the investments and will be sufficient for future expansions to higher capacities.
Adinarayana said in view of these factors, the Centre should explore various other options to prevent privatisation. He said the demands include capital restructuring by converting the loans/interest as equity and the commitment given by GOI in 1977 to provide assured Iron ore deposits to the plant to be honoured.
"Otherwise RINL and NMDC should be merged. The plant capacity should be increased to 20 million tonne per annum so that the total development of AP continues and creates the employment scope for the people of AP in general and Steel Plant displaced persons numbering around 800 in particular," he stated.
