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Former CMD of RINL bats for merger with NMDC

 

Date | Jan 23, 2017:


Former chairman-cum-managing director of Rashtriya Ispat Nigam Limited Y. Siva Sagar Rao and Stee Plant Employees Union president J. Ayodhyaram along with other members at a rountable conference organised by CITU on 'Save RINL' in Visakhapatnam on Monday. Photo: C.V.Subrahmanyam   |   Photo Credit: Photo: C.V.Subrahmanyam

 

Former chairman-cum-managing director of Rashtriya Ispat Nigam Limited Y. Siva Sagar Rao on Monday termed the demand for merger of Visakhapatnam-headquartered public sector with National Mineral Development Corporation as a viable solution to end the woes of both the PSUs.

 

At a roundtable meeting on ‘Save RINL” organised by CITU-affiliated Steel Plant Employees’ Union here at Public Library, he said RINL was paying a huge amount towards production for want of raw material security. On the other hand, NMDC was spending Rs.1200 crore per annum towards interest liability (excluding production loss) for not commissioning its three million tonne steel plant at Nagarnagar in Chattisgarh in due time.

 

The merger proposal mooted long ago has not found any response from the Centre. The merger if made will be mutually beneficial for both the PSUs,” Mr. Rao said.

 

RINL can expand up to 20 million tonne from existing 6.3 million tonne going by rich land bank of 25,000 acres it has. On the other hand, NMDC has huge iron ore blocks in Baladilla of Chattisgarh.

 

While RINL does not have the capital to expand and captive mines for raw material security, NMDC is not able to commission its steel plant at Nagarnagar so far despite launching work in 2011, Mr. Rao said.

 

By using RINL expertise, NMDC could not only operate Nagarnagar unit profitably, but also go for more Greenfield steelmaking ventures. RINL could also overcome its raw material insecurity if the Centre conceded the demand for merger,” he said.

 

SPEU president J. Ayodhyaram said a political will was required to merge both the PSUs and announced plans to launch a joint struggle by all the trade unions to mobilise public support for merger.

 

SPEU general secretary said if merger was not done, RINL would be pushed to an irreversible crisis situation.

 

 

(Source: http://www.thehindu.com/)