BJP Leader Moots Amalgamation Of RINL, SAIL, Nagarnar Steel Plant

Visakhapatnam: At a time when the Ministry of Steel is exploring various options to save Rashtriya Ispat Nigam Limited (RINL) to prevent it from the brink of closure, a prominent BJP leader’s proposal for mega amalgamation of SAIL, RINL and NMDC Nagarnar Steel Plant (NSL) has generated a lot of heat.

SAIL Independent Director Sagi Kasi Vishwanath Raju, who is the State general secretary of BJP, recently said the mega amalgamation will benefit RINL by securing raw material access, help SAIL expand its capacity with RINL’s skilled workforce and technical expertise, and ensure NMDC avoids privatising the Nagarnar Steel Plant.

His proposal came at a time when the Ministry of Steel is examining various alternatives to save RINL, the corporate entity of Visakhapatnam Steel Plant. The plant is operating at one-third of its full capacity of 7.3 million tonnes due to severe working capital crunch and raw material insecurity.

Incidentally, SAIL, NMDC and RINL are under the Ministry of Steel so any decision on their future once it clears needs approval of Union Cabinet after getting the nod of Ministry of Finance.

Responding to the social media posting by Congress MP and Public Accounts Committee Chairman KC Venugopal, Union Steel and Heavy Industries Minister HD Kumaraswamy ruled out privatisation of RINL.

He also said that various options are being examined to retain RINL in the public sector. Earlier during his visit to Visakhapatnam along with Minister of State for Steel and Heavy Industries Bhupatiraju Srinivasa Varma, he said they will convince the Prime Minister to kickoff a revival package.

RINL’s loan liabilities due to capital expenditure and losses are being estimated at Rs.35,000 crore. Visakha Ukku Parirakshana Samiti, an umbrella organisation of all trade unions and Steel Executives Association (SEA), the officers’ body, have been demanding either re-merger of RINL and SAIL or their amalgamation as a way out.

Nagarnar Steel Plant with an installed capacity of 3 million tonnes has been set up by NMDC near Bailadilla mines in Chhattisgarh with an investment of over Rs 20,000 crore. It is under process of privatisation.

Though Cabinet Committee on Economic Affairs cleared the privatisation of RINL, its subsidiaries and joint ventures in January 2021, implementing it has been paused due to stiff opposition from the unions, political parties and not so favourable market

conditions.