The Steel Executives Federation of India plans discussions on re-merging Visakhapatnam Steel Plant with Steel Authority of India Ltd and the potential merger of Chhattisgarh NMDC Nagarnar steel plant with SAI, reports Business Line. The meeting aims to address government strategies safeguarding RINL-VSP from privatization, exploring options akin to recent actions for Salem Steel and Dredging Corporation of India Ltd.
The Steel Executives Federation of India (SEFI) gears up for deliberations on pivotal mergers within the steel industry. The focal point remains the proposed re-merger of RINL-Visakhapatnam Steel Plant with the Steel Authority of India Ltd (SAIL). Simultaneously, discussions will revolve around amalgamating the Chhattisgarh NMDC Nagarnar steel plant with SAIL.
Scheduled in New Delhi on January 5, the council meeting aims to attract representatives from various associations, including the Officers Association of SAIL nationwide and the Steel Executives Association (SEA) of RINL-VSP.
SEA President Katam Chandra Rao, present in New Delhi for a presentation at the SEFI’s council meeting, stressed the importance of these discussions. He highlighted the need for protective measures from the Central Government to secure steel plants like RINL-VSP, given recent government decisions reversing privatization plans for Salem Steel and Nagarnar Steel Plant.
Rao expressed hopes for a similar government response regarding RINL-VSP's fate. He mentioned ongoing governmental strategies, including considering private partnership with JSPL for financial support to restart Blast Furnace-3. Rao emphasized that the SEFI Council meeting is crucial to deliberate on these matters.
Further insights revealed the government's contemplation of alternatives after the Salem Steel disinvestment plan faltered. Rao cited examples such as forming separate entities or merging entities, similar to the recent Dredging Corporation of India Ltd.'s merger with Visakhapatnam Port Authority.
Highlighting the disparity in capacities between Salem and RINL-VSP, Rao concluded that while Salem might merge with another public sector company due to its smaller capacity (1 million metric tons per annum), a re-merger with SAIL, considering RINL-VSP's substantial capacity of 7.3 million metric tons per annum, stands as the more favorable option.
The Steel Executives Federation of India is convening to discuss the re-merger of RINL-Visakhapatnam Steel Plant with SAIL and the possible amalgamation of Chhattisgarh NMDC Nagarnar steel plant with SAIL. The meeting aims to secure protective measures from the government for RINL-VSP, similar to recent actions taken for other steel plants. The focus remains on exploring viable strategies amidst government deliberations, intending to safeguard the steel industry's interests.