SAIL’s independent director Sagi Viswanatha Raju urges Centre to amalgamate SAIL, RINL and NSL

In an exclusive interview to The Hindu, Sagi Viswanatha Raju said Union Minister for Steel H.D. Kumara Swamy has responded positively to his proposal of SAIL’s taking over both RINL and NSL to enable them overcome all their hurdles

Steel Authority of India Limited’s (SAIL) independent director and BJP-Andhra Pradesh State General Secretary Sagi Kasi Viswanatha Raju on Sunday (October 6, 2024) urged the Union Government to take steps for the amalgamation of Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL-Visakhapatnam Steel Plant) and NMDC Steel (NSL), located at Jagdalpur of Chhattisgarh for the creation of a mega Central Public Sector Enterprises, which would become the 10th largest steel producer in the world in future.

 Mr. Raju sent a detailed note to the Prime Minister’s office and Niti Aayog against the backdrop of a scheduled high-level meeting to be held in New Delhi on Tuesday (October 8, 2024) to discuss the issues of RINL which has been struggling with multiple financial problems and lack of dedicated raw material sources.

In an exclusive interview to The Hindu, Mr. Viswanatha Raju said Union Minister for Steel H.D. Kumara Swamy has responded positively to his proposal of SAIL’s taking over both RINL and NSL to enable them overcome all their hurdles.

“At present, the Union Government policy is that one public sector unit should not take over another PSU. If the rule is relaxed, SAIL can rescue RINL and NSL easily. The proposed amalgamation will enhance SAIL’s production capacity up to 50 million tonnes per annum from its present 20 million tonnes within no time. Both RINL-VSP and NSL’s production capacity will increase when SAIL is given an opportunity for the takeover. SAIL’s easy access to raw material, marketing facilities will be an added advantage for those struggling industries,” Mr. Viswanatha Raju said.

“The Union Government has permitted SAIL to expand its facilities. Against this background, the Prime Minister’s office was requested to allow SAIL to takeover RINL instead of establishing new plants as it would take many years. Fortunately, SAIL’s management is also keen to take over RINL. However, it needs permission from the Centre. We hope the Union Government would relax norms and allow SAIL to take over both RINL and NSL which would generate employment and ensure more GST revenue in all forms to the Government,” he added.

Mr. Viswanatha Raju said BJP’s State president D. Purandeswari and other top leaders had also requested the Centre to pursue the amalgamation proposal to continue RINL as a PSU in future too.

Published - October 06, 2024 11:42 am IST