New Delhi: The government's decision for disinvestment of Rashtriya Ispat Nigam Limited (RINL) is in line with the new PSE (Public Sector Enterprise) Policy, said Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad in the Lok Sabha on the first day of the Monsoon Session of Parliament. In a written response to a question raised in the House, Karad said that the Cabinet Committee of Economic Affairs (CCEA) had accorded an in-principle approval for 100 percent disinvestment of the Centre's shareholding in RINL on January 27, 2021.
While reiterating that according to the new PSE policy, existing Public Sector Enterprises (PSEs) have been broadly classified under strategic and non-strategic sectors, Karad said, "It has also been laid down that in strategic sectors, only a bare minimum presence of the existing PSEs at Holding Company level will be retained under Government control. The remaining enterprises in strategic sector will be considered for privatisation or merger or subsidiarization with another CPSEs or for closure."
"PSEs in the non-strategic sectors shall be considered for privatisation, where feasible, otherwise such enterprises shall be considered for closure. Steel manufacturing falls in the non-strategic sector," he added.
The government's privatisation plan for RINL has been met with fierce opposition by trade unions. The Steel Executives' Association has made several representations to the government in which it has demanded the 'Maha' merger of RINL with other steel PSUs, SAIL and NMDC, to create a mega steel entity.
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