The proposed disinvestment of 10 per cent stake in the Rashtriya Ispat Nigam Limited - Visakhapatnam steel plant is a retrograde move and it should be opposed by the unions, the public and all other sections, according to Ch. Narasinga Rao, a member of the State executive of the CPM.

At a press meet here on Wednesday, he said the NDA Government appeared to be firm on completing the process of offloading 10 per cent stake in the public sector unit by November and therefore the unions and others should intensify their struggle. He said the RINL as the only shore-based steel plant in the country had a great many advantages due to its location, but the Government was going ahead with its decision to dilute its equity.

He said that in the past too the UPA Government had made attempts to push through the 10 per cent sale of the stake in the steel plant, but the move had to be postponed due to weak market conditions. All the unions had opposed the move unitedly in the past and gone on a day's strike in protest and they should show the same spirit of solidarity in fighting the move now, he added.

He also accused the Government of grossly undervaluing the plant, ignoring its advantages such as its location and the ensuing logistical advantages, the huge land bank it was having and the recent completion of the expansion project. He said the Government was highlighting only the disadvantage of the RINL of not having captive iron ore mines.

He said even now the market conditions were not conducive for dilution of the stake and the NDA Government should give up the move as in 2012. Otherwise, it would be opposed, he said.

>sarma.rs@thehindu.co.in

Related Topics
comment COMMENT NOW