RINL moots asset sale in Hyderabad, Chennai as part of monetisation plan
Visakhapatnam steel plant trade unions oppose the move, demand merger with SAIL
image for illustrative purpose
‘Privatisation Ploy’:
- Selling assets is part of weakening RINL for privatisation, alleges trade unions
- Describes MoU with JSPL for reviving Blast Furnace-3 as counter-productive
- Union alleges RINL is running at 60% capacity due to raw material shortage
- Dislocation in supply from AGPL caused a loss of Rs 4,000 crore
- Banks are ready to lend loans but Government is not responding
Visakhapatnam: Even as the demand for merger with Steel Authority of India Limited (SAIL) is gaining pace, the proposal of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant to sell its valuable assets in Hyderabad and Chennai as part of monetisation has evoked strong condemnation by the trade union leaders.
RINL owns 6,016 square meters plot at Velumala in Medak district and 22 acres in Survey Nos. 315 and 434/1 in Hyderabad and 13.20 acres at Sthangadu in Chennai for its stockyards. The Central Government should desist from moves against the interests of Visakha Steel Plant, CITU State secretary and Visakha Ukku Parirakshana Porata Samiti honorary chairman Ch Narsinga Rao told Bizz Buzz on Thursday.
He wondered why BJP State president and Rajahmundry MP Daggubati Purandeswari submitted a memorandum to Union Steel Minister HD Kumaraswamy for considering merger of RINL and NMDC Nagarnar Steel Plant with SAIL instead of taking it up directly with Prime Minister Narendra Modi.
Rao said the BJP-led NDA Government has put up Hyderabad and Chennai market yards and offices for sale for Rs 476 crore after selling the forged wheel plant at Raebareli to the Railways for Rs 1910 crore. Steel Plant quarters in Visakhapatnam were put up for sale for Rs 250 crore. The sale of assets is part of a conspiracy to weaken RINL and pave the way for its privatisation.
He also described the MoU signed with Jindal Steel and Power Limited (JSPL) for reviving Blast Furnace-3 as counter-productive and regretted not making any effort for production from Blast Furnace-1 and demanded operation of all the three Blast Furnaces to produce its full capacity of 7.3 million tonnes per annum.
Rao alleged that with the lame excuse of raw material shortage, RINL at present was only running the plant at 60 per cent capacity. The dislocation in supply of raw material from Adani Gangavaram Port Limited (AGPL) for 36 days had caused a loss of Rs 4,000 crore to RINL, he pointed out. He said though the banks are ready to lend working capital loans worth Rs3,000 crore, the Government of India is not responding to the request for issuing Letter of Comfort (LoC).
“We are totally opposed to the monetisation plan by the RINL finalised at the behest of the Ministry of Steel. Selling away valuable assets is not the solution. What is required immediately is to consider the merger of RINL with SAIL as a permanent solution of mutual benefit,” Visakha Steel Employees’ Congress (VSEC) president Neerukonda Ramachandra Rao, said.
