Steelmaking in process at the Visakhapatnam Steel Plant in Visakhapatnam.
| Photo Credit: K.R. Deepak
The Union Ministry of Steel has said there is no freeze on the disinvestment process of Rashtriya Ispat Nigam Limited (RINL), the corporate entity behind Vizag Steel Plant.
The disinvestment process of RINL is “under progress and efforts are being made by the company and supported by the government to improve the performance of RINL and keep it as a going concern,” it said.
Coming a day after Union Minister of State for Steel and Rural Development Faggan Singh Kulaste spoke to the media, the terse April 14 statement of the Ministry is bound to turn the spotlight again on the steel plant and ongoing protests. The ruling Bharat Rashtra Samithi in Telangana, which had sought to turn the heat on the Centre with the disinvestment, had claimed victory when reports quoting the Minister said the process has been put on hold.
Also read: BRS has no right to speak about Visakhapatnam Steel Plant, says BJP Andhra Pradesh general secretary
At another level, Telangana government was also contemplating mounting a bid for a stake in the Vizag Steel Plant as a measure to save the facility from getting privatised. Working president of BRS and Telangana Minister for Industries K.T. Rama Rao had recently said that a team of officials from the State government, including those from Singareni Collieries, was in Visakhapatnam to study the situation and explore the possibility of participation in bids for funding of working capital of the plant.
Singareni Collieries is a coal mining company in which Telangana government has 51% stake and the rest is with the Centre.
It was not just BRS, but even the BJP as well some trade unions had welcomed Union Minister Mr. Kulaste’s April 13 statement that the Centre “is in no hurry to go ahead with the privatisation of Visakhapatnam Steel Plant (VSP)“.
Also read: Centre planning to privatise Vizag Steel Plant in the name of working capital needs: KTR
Vizag Steel as the plant is popularly known is the first shore-based integrated steel plant in the country.
RINL had floated an expression of interest (EOI) in March in which it said it is looking to partner with companies having interests in steel and steel making raw materials and invites business proposals for supply of steel from RINL. The potential partners can participate by supplying one or more key raw materials (like coking coal /BF coke, iron ore) and in turn take steel products; and or fund working capital and in turn take steel products.
April 15 is the last date of submission of the EOI.
For all the latest business News Click Here
