Meeting with AP CM a damp squib for RINL union leaders
They hoped that the Chief Minister would extend unconditional support to their demand for merger of RINL with SAIL
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Visakhapatnam: Chief Minister N Chandrababu Naidu’s advice to trade unions of Rashtriya Ispat Nigam Limited (RINL) to try to maximise the production of Visakhapatnam Steel Plant without committing on a bailout package has caused anguish among the employees over their future.
The union leaders, who met Naidu recently at Amaravati in the presence of TDP State unit president and Gajuwaka MLA Palla Srinivasa Rao, by and large, had hoped that the Chief Minister would extend unconditional support to their demand for merger of RINL with SAIL.
Presently, RINL is leading a hand-to-mouth existence with mounting debt liabilities, severe raw material problems and working capital crunch. As a result, the production of RINL, the corporate entity of VSP, has been drastically slashed. The management is operating only two of the three blast furnaces, one of them through a joint venture agreement with JSPL. Raw material insecurity for want of captive mines, is another big handicap for the navratna company.
“We expected that the honourable Chief Minister would pledge his total support for RINL-SAIL merger-conceived as a permanent solution of mutual convenience for both the companies,” Visakha Steel Employees’ Congress (VSEC) president Neerukonda Ramachandra Rao told Bizz Buzz.
RINL has been listed for strategic disinvestment by way of 100 per cent privatisation by the Cabinet Committee on Economic Affairs in 2021. Since then due to protests from various quarters, valuation for inviting EoIs has been put off.
The company has accumulated debt liabilities of nearly Rs.20,000 crore. Most of its land bank, nearly 20,000 acres is yet to be transferred to RINL from the Centre.
As SAIL has embarked on a massive expansion plan with an investment of over Rs1 lakh crore, the merger supporters feel if their demand is conceded, will help in proper utilisation of RINL’s lands and expertise. SAIL captive mines would have ended RINL’s dependence on raw material from others reducing its cost of production. Union Steel Minister HD Kumaraswamy had declared during his maiden visit to VSP after assuming charge that in a month or two they would take a big decision on future of RINL.
