Narendra Modi-led NDA government that has been making moved for the privatization of Visakha Steel Plant (Rashtriya Ispat Nigam Ltd., – RINL) since 2019 and not bothering about large scale protests going on in Visakhapatnam since then, has now reportedly given up its move and now focusing on how to stabilize it.
As TDP emerged as a key supporter for the survival of the Modi government and Chief Minister Chandrababu Naidu has been categorically opposing privatization move, as it is attached to the sentiments of Andhra people, the Center felt that political privatization would cost severely.
During the last five years YS Jaganmohan Reddy has not only surrendered itself to the Center on this issue and also came forward to become a partner in privatization. Release of Rs 2,500 crore for the Plant indicates Center’s commitment to ensure smooth functioning of the plant. During the previous regime, not a single rupee was released by the center.
Official sources indicate that instead of privatisation, the Center is looking into the possibility of merging Visakha Steel with another central public sector steel company ‘SAIL’. It felt that such steps would solve the financial and operational problems. As a part of this, the Center will fund the operations of RINL.
It is known that the Center is planning to sell the land owned by Visakha Steel to NNDC along with settlement of bank loans. Recently DFS Secretary, Steel Secretary and SBI top officials met in this regard. SBI was one of the banks that lent a significant amount to RINL.
Official sources said that the Center is moving towards finding a permanent solution for Visakha Steel. RINL’s merger with SAIL is an option, according to sources. Rashtriya Ispat Nigam Limited (RINL) is a plant with a capacity of 75 lakh tonnes of steel operating in Visakhapatnam, which is owned by the Department of Steel.
This is the first integrated steel plant in the country located on the seashore. Steel Authority of India Limited (SAIL) is also owned by the Department of Steel. On the other hand, it is known that the Center has recently decided to allocate funds of Rs.2500 crores to increase the production in the Visakha Steel Plant.