Demand for merger of RINL with NMDC, SAIL gaining momentum
Even as YSR Congress Party and Telugu Desam Party are trading charges against each other over their respective stands on the Centre's decision to privatise Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, there is unanimity among all the parties in saving the public sector unit from going to private hands.
image for illustrative purpose
Visakhapatnam,Feb 13 Even as YSR Congress Party and Telugu Desam Party are trading charges against each other over their respective stands on the Centre's decision to privatise Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, there is unanimity among all the parties in saving the public sector unit from going to private hands.
The demand for merger of RINL with NMDC and SAIL is gaining momentum with arch rivals Tourism Minister Muttamsetti Srinivasa Rao and TDP leader Ganta Srinivasa Rao, who resigned from the membership of Assembly in protest, sharing dais at a meeting organised at VSP main gate to decry the privatisation move on Friday.
RINL has a loan and interest liability of over Rs.20,000 crore. The company invested Rs.12,300 crore on expanding capacity from 3 to 6.3 million tonne and recently by spending Rs.4,000 crore on modernisation to increase the capacity further to 7.3 million tonne, About 25,000 farmers surrendered 22,000 acres for establishment of the steel plant.
The company has already invested nearly Rs.2,000 crore on a forged wheel factory in Rae Bareli (Uttar Pradesh) and Rs.361 crore to acquire strategic control of Eastern Investments Limited to source iron ore from Odisha. The company's demand for captive mines remained on paper since its inception increasing its production cost significantly.
There is an overwhelming demand for merger of RINL with NMDC and SAIL, all under the control of the Ministry of Steel. "Merger would be mutually beneficial as SAIL has captive mines and NMDC owns several iron ore blocks in Chhattisgarh. NMDC. The 3 million tonne integrated steel plant established by NMDC at Nagarnar near Jagdalpur in Chattisgarh can also gain the expertise of RINL saving lot of resources if the amalgamation demand is conceded," Vizag Steel Plant Parirakshana Porata Samiti chairman and CITU State president Ch. Narsinga Rao told Bizz Buzz on Saturday.
The rivalry between YSRCP and TDP notwithstanding, leaders belonging to all the parties are making a beeline to VSP to express their solidarity with the agitating employees of the steel plant and recalling how a Statewide agitation led by students and elected representatives forced then Prime Minister Indira Gandhi to concede the demand on the floor of Parliament in 1971.
YSRCP Parliamentary Party leader V. Vijayasai Reddy after leading a delegation of MPs to Delhi and representing Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Steel Minister Dharmendra Pradhan not to privatise RINL, the pride of Andhra Pradesh and explore other options, said they would not allow strategic sale of the company.
While the trade unions of VSP continued their relay hunger strike for the second day, TDP leader and former MP Palla Srinivasa Rao is also getting a lot of support for his fast-unto-death at Gajuwaka on Wednesday.
