Ex-Bureaucrat Backs Demand For Takeover Of RINL By SAIL

Visakhapatnam: Former bureaucrat and noted social activist EAS Sarma has asked the Union Government to immediately announce the dropping of decision to privatise Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant and direct Steel Authority of India Ltd (SAIL) to take it over.

In a representation to Union Finance Minister Nirmala Sitharaman, Sarma said the need of the hour is to announce a financial package to enable Visakhapatnam Steel Plant (RINL) to settle the dues to its employees and vendors, and revive the plant, instead of imprudently selling it to private players for a pittance.

Referring to the statement made by HD Kumaraswamy, Union Steel Minister that the Centre would “pump in Rs5,000 crore to revive the historic Sir M Visvesvaraya Iron and Steel Factory in Bhadravati in Karnataka, a steel plant that played a pioneering role in triggering all-round development in that State, RINL is a symbol of pride for northern region of Andhra Pradesh like Visweswaraya steel plant for Karnataka.

"RINL became a reality when the local people launched a widespread agitation, some of them even losing their lives, with MPs from this region tendering their resignations to press home the sentiments of the people. But for RINL, the all round development that has taken place in this part of the State, which has been recognised as a backward area in the AP State Reorganisation Act, 2014 and also by Niti Aayog, would not have been possible. The unilateral and highly imprudent decision of the NDA government, of which the present political establishment in AP has since become a part, to privatise RINL, has given rise to a widespread public outcry against it. Our representatives in the Parliament, irrespective of their political leanings, are left with no other alternative than to respect the feelings of the people and reflect their sentiment in one voice," he recalled.

Sarma stated that VSP has valuable machinery and a rich treasure house of human resources, comparable to their counterparts anywhere else in the world. They have a huge stretch of land of 19,730 acres, the value of which, even on a conservative basis, would exceed Rs 2 lakh crore, which no private player, domestic or foreign, can afford to pay. If the NDA government attempts to sell such a valuable CPSE for a pittance, let me caution you that it will prove to be an indefensible, highly regressive act of financial impropriety, that will call for a public enquiry.

He pointed out that the National Steel Policy (NSP):Para 4.15.4 of NSP-2017 states, “CPSEs will .be encouraged to take leadership role in development of steel industry & the community, adopt a more inclusive business model, increase their CSR spends, invest in R&D for indigenous design & engineering and product development for replacement of import,” and demanded the immediate takeover of RINL by SAIL in the larger interest of the workforce and the people of North Andhra Pradesh.