Giving a new twist to the row over the proposed divestment of the Centre’s stake in Vizag Steel Plant (VSP), the Telangana Government is mulling over the possibility of joining the race for the plant.

A high-level team of officials is currently studying the modalities of participating in the Express of Interest (EoI) for Rashtriya Ispat Nigam Ltd (RINL) and is also expected to visit the plant, according to sources.

A navratna Public Sector Enterprise 100 per cent owned by the Government of India, RINL is a corporate entity of Visakhapatnam Steel Plant (VSP), which was India’s first integrated steel plant. 

In January 2021, the CCEA had approved a proposal for 100 per cent strategic divestment of the Centre’s shareholding in RINL, along with management control by way of privatisation. Early this year, bids for valuation of the company were also called for. 

The move to privatise VSP has triggered protests from the employees’ unions; it has also become a political issue, with the Opposition parties taking up the matter.  

K. T. Rama Rao, Executive President of the Bharat Rashtra Samithi (BRS), formerly the Telangana Rashtra Samithi (TRS), recently wrote a letter to the Centre opposing the move and expressed solidarity with the employees of VSP, who are opposing the move.

According to data available with the employee’s body, the company has nearly 24,000 acres of land `valued’ at around Rs 1.5 lakh crore. At present, 6,500 officers, 12,000 regular workers and 20,000 contract workers serve the company.

Also read: RINL explores ways to raise working capital

It was founded in Visakhapatnam in 1971 after a major agitation by the people of the State. It produced about 5.7 million tonnes of hot metal, 5.2 million of crude steel and 5.1 million tonnes of saleable steel in 2021-22.

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