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Decision on RINL privatisation not under reconsideration: Steel Minister in Lok Sabha

Minister for Steel Ram Chandra Prasad Singh has said that the government’s decision on privatisation of Rashtriya Ispat Nigam Ltd (RINL) is not under reconsideration
Decision on RINL privatisation not under reconsideration: Steel Minister in Lok Sabha
Decision on RINL privatisation not under reconsideration: Steel Minister in Lok Sabha
  • ‘The decision for strategic disinvestment of RINL has been taken in line with New Public Sector Enterprise (PSE) Policy for Atmanirbhar Bharat notified by the Government’
  • ‘Disinvestment of Government of India’s equity will lead to infusion of capital for optimum utilisation, expansion of capacity, infusion of technology and better management practices’

New Delhi: Minister for Steel Ram Chandra Prasad Singh has said that the government’s decision on privatisation of Rashtriya Ispat Nigam Ltd (RINL) is not under reconsideration. On being asked if the government has taken note of the protests against its decision for100 percent disinvestment of its shares in RINL, the minister said in a written response in the Lok Sabha on Wednesday, “Various representations have been received in the Ministry for reconsideration of the decision on disinvestment of Rashtriya Ispat Nigam Limited (RINL).”

“The decision for strategic disinvestment of RINL has been taken in line with New Public Sector Enterprise (PSE) Policy for Atmanirbhar Bharat notified by the Government. The decision on disinvestment of RINL is not under reconsideration,” said the minister.

‘RINL privatisation will lead to better management practices’

While explaining the reason behind not reconsidering RINL’s privatisation, Singh said, “Strategic disinvestment of Government of India’s equity will lead to 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.”

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‘Govt has urged Odisha to reserve iron ore mine for RINL’

On being asked if RINL is facing financial hardship due to lack of captive iron ore mines, a pain point that has been brought to the fore by protesting trade unions at RINL time and again, the minister said, “RINL has tied up with NMDC to meet the requirement of iron ore for steel making. RINL has requested various state governments viz Odisha, Chhattisgarh and Andhra Pradesh for recommending reservation of iron ore deposit under Section 17A(2A) of MMDR Act 2015 to the Ministry of Mines, Govt. of India. Ministry of Steel has also requested Government of Odisha for reservation of an Iron ore block in favour of RINL.”

Backdrop

The Central government has categorically declared its intention to privatise or shut down PSUs that have been incurring losses. The government has also announced a mega disinvestment drive which is going to drastically reduce the number of companies under government’s control. While a bare minimum number of PSUs will be retained in the strategic sectors listed by the government, the ones in non-strategic sectors will be either privatised, merged or closed down. For FY22, the government has set a target of raising Rs 1.75 lakh crore from PSU disinvestment.

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