The move to take up disinvestment in the Rashtriya Ispat Nigam Ltd (the Visakhapatnam steel plant) along with other PSUs by the Union Government has come in for criticism from the unions who have served a one-day strike notice.

All the trade unions of Visakhapatnam Steel Plant said they will strike if the move is not withdrawn.

The Union Government has decided to offload 10 per cent stake in RINL as a part of its larger plan to mobilise Rs 40,000 crore by disinvestment in the PSUs during the current financial year. It has invited bids for the purpose.

The union representatives met at Ukkungaram and resolved to form a committee to take up an agitation to put pressure on the Government to give up its move. A convention of central trade unions will be held in the city to oppose the move.

The Union Government formed an inter-ministerial group to evaluate the presentations to be made by the merchant bankers who expressed willingness to manage RINL's initial public offer on September 8 in New Delhi. The RINL Board approved disinvestment up to 25 per cent in 2005-06.

RINL is currently expanding its capacity from the current 3 million tonnes to 6.3 million tonnes. It has also taken up modernisation of its existing production facilities at a cost of Rs 7,000 crore to take its total capacity to 7.3 million tonnes by 2013-14. The company is planning to expand its capacity to 20 million tonnes by 2020 with an investment of Rs 25,000 crore.

RINL, which is presently enjoying the Navratna status, has to be listed by the year-end. It had a paid-up capital of Rs 7,827.32 crore as on March 31, 2011.

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