Union Finance Minister Reiterates Resolve Privatisation of RINLVSP
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Union Finance Minister Reiterates Resolve Privatisation of RINLVSP

In a blow to those who have been fighting against the proposed privatisation of Rashtriya Ispat Nigam Limited’s, Indian government’s again reconfirmed the

In a blow to those who have been fighting against the proposed privatisation of Rashtriya Ispat Nigam Limited’s, Indian government’s again reconfirmed the resolve to sell the plant. Union Finance Minister Ms Nirmala Sitharaman in a written reply to a question from YSRCP MP of Visakhapatnam Mr MVV Satyanarayana in the Lok Sabha said “The state has no equity share in the Visakhapatnam steel plant and the centre is withdrawing 100% of the investment. State Government is consulted in specific matters as and when required and their support is solicited in matters that require their intervention. Strategic disinvestment of the Government of India’s equity will lead to an infusion of capital for optimum utilisation, expansion of capacity, infusion of technology, and better management practices. This will result in higher production and productivity and expansion of direct and indirect employment opportunities.”

Visakhapatnam, over the past few weeks, has been witnessing protests take the stage against the move to privatise the Visakhapatnam Steel Plant. With several political parties joining the protests, the resentment against the move has been growing stronger. It may be noted that even a state-wide bandh was observed recently as a mark of protest against the disinvestment of the plant.

India’s Union Cabinet has approved privatisation of Vizag based state owned public sector Rashtriya Ispat Nigam Ltd, in which the government currently holds 100% stake. A government official had said “While approving the strategic disinvestment of RINL a few days ago, the Cabinet delegated powers to the Alternative Mechanism headed by the Finance Minister to decide whether the subsidiaries of RINL will be part of the transaction, depending on the feedback from potential investors.”

RINL Subsidiaries

The Orissa Minerals Development Company Ltd

The Bisra Stone Lime Company Ltd

RINL JVs

RINMOIL Ferro Alloys Pvt Ltd

RINL Powergrid TLT Pvt Ltd

History of RINL - The decision to establish a Steel Plant at Visakhapatnam was announced in the Parliament in 1970 by the then Prime Minister Late Ms Indira Gandhi. The foundation stone for this massive project was laid in 1971. The Detailed Project Report was prepared in 1977. However, it was only in 1979 with the Government of erstwhile Soviet Union offering techno-economic cooperation, the cabinet approved the proposal for setting up of an integrated Steel Plant at Visakhapatnam. Following this, the comprehensive Revised Detailed Project Report was prepared adopting latest technologies available. However, the journey of Vizag Steel has not been very smooth. 22 long years between conception and commissioning resulted in an increase of project cost to over INR 8,500 crores. Visakhapatnam Steel Plant was initially set up with a rated capacity of 3.4 million tonnes of Hot Metal, 3.0 million tonnes of Liquid Steel and 2.7 million tonnes of Saleable Steel. RINL has completed the first phase of expansion to increase Hot Metal capacity to 6.5 million tonnes, Liquid Steel to 6.3 million tonnes & Saleable Steel to 5.7 million tonnes. RINL has started second phase of expansion to increase Liquid Steel capacity to 7.3 million tonnes by modernization & up gradation of existing iron & steel making units

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