RINL privatisation:Jagan writes to Modi to reconsider decision
PTI | Amaravati | Updated: 07-02-2021 11:24 IST | Created: 07-02-2021 11:24 IST
Amaravati, Feb 7 (PTI): Amid growing outcry against theCentres move to privatise Rashtriya Ispat Nigam Limited(RINL) which has a steel plant in Visakhapatnam, ChiefMinister Y S Jagan Mohan Reddyhas written to Prime MinisterNarendra Modi to reconsider the decision.
He said the state government is ready to work with theSteel Ministry to protect the Public Sector Enterprise, whichprovides employment to 20,000 people directly and many othersindirectly.
''The Government of Andhra Pradesh is ready to work withthe Ministry of steel to protect the jewel of Andhra Pradesh.
Therefore, I request you to kindly reconsider thedisinvestment plans of RINL Visakhapatnam and explore otheropportunities to put the plant back on track,'' he said in theletter, written on Saturday.
RINL the corporate entity of Visakhapatnam Steel Plant(VSP) a Navratna Company under the Ministry of Steel,currentlyhas a capacity of 7.3 million tonnes per annum and took upplant modernisation and capacity expansion borrowing loansfrom banks.
Recently the Cabinet Committee on Economic Affairs (CCEA)has given in-principle approval for 100 per cent strategicdisinvestment of the Centres shareholding in RINL, along withmanagement control by way of privatization.
The Chief Minister said the Cabinets clearance for theprivatization has become a point of discussion among people ofthe state and a cause of concern.
Owing to the unfavourable steel cycle globally, thecompany was making losses since 2014-15 and was finding itdifficult to service the debt, he said ''One of the major structural issues that also leads tohigh cost of production is the absence of a captive mine,thereby affecting the profitability,'' he said.
Reddy suggested that the PSEs short-term loans, alongwith long-term loans, be converted into equity, taking offrepayment pressures and interest burden.
He also suggested that RINL be allotted captive Iron OreMinister in order to reduce the input cost.
Employees of the steel plant and civil society, supportedby various political parties, have taken out rallies,demanding that the Centre roll back its decision.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
