How Will It Benefit The Three CPSEs?

Visakhapatnam: There seems to be unanimity among the trade unions and various political parties on the idea of converting SAIL, RINL and NSL into a single entity for mutual benefit.

RINL of late has struggled to remain afloat, and has incurred continuous losses since FY16 (except FY22). It has incurred an estimated loss of Rs 5,000 crore during FY24 and has a negative net worth of around Rs 4,000 crore as on March, 2024. It is facing an acute liquidity crisis. NSL, which owns a greenfield steel plant at Nagarnar in Chhattisgarh, does not have expertise in running an Integrated Iron and Steel plant. This is getting reflected in the slow ramp-up of production facilities. Lack of marketing set-up is hindering sale of product even at lesser realisation.

SAIL has already decided to increase its capacity to 35 MT by FY32 with an investment of Rs 1,000 billion. It also wants to improve its process and operating efficiencies to further increase its present capacity.