‘Merger of VSP with SAIL plants can create a global conglomerate’
The Steel Executive’s Federation of India (SEFI) and RINL’s Steel Executive Association have demanded that the Centre’s plan to privatise the Visakhapatnam Steel Plant (VSP) be dropped and that the RINL, Steel Authority of India Limited (SAIL), Neelanchal Ispat Nigam Limited, NMDC and Mecon underneath the Ministry of Steel be merged to type a large conglomerate.
Both the our bodies, at a assembly in New Delhi on Monday, handed a decision to submit a illustration to the federal government looking for that the metal business be continued as a strategic sector.
“The merger of the units under a roof, the SAIL, will make the steel plants into a huge steel conglomerate with a production capacity of about 30 MPTA. With all steel plants being in the expansion mode, the total production can go up to 50 MPTA by 2030 and this would make the steel conglomerate among the biggest in the world. It would even cross the POSCO’s capacity of 40 MPTA,” stated SEA vice-president K.V.D. Prasad.
Both the SEFI and the SEA members really feel that the RINL’s benefits can iron out the disadvantages of the SAIL and vice-versa.
Speaking concerning the RINL’s benefits that can be helpful to the SAIL and different metal plants, Marpu Sarat of the SEA stated the RINL is the one shore-based built-in metal plant and its sea connectivity can be utilised by others for import and exports.
“Moreover, we have a very strong marketing network in south India, which can help the SAIL immensely. The RINL has got a huge land bank that can be utilised for expansion and changing the product mix, which the SAIL plants do not have,” identified Mr. Prasad.
He stated with no captive mine, the RINL’s manufacturing price goes up and with the merger, the mines of the SAIL and the NMDC can change the fortune of the RINL.
As the RINL has a restricted product combine, its high quality has a global recognition. With the merger, the SAIL that has a large product vary can make the metal conglomerate a power to reckon with within the global market, opined Mr. Prasad.
The Centre has up to now invested round ₹4,500 crore within the RINL, however the metal plant has given again over ₹45, 000 crore within the type of taxes and dividends. More basically, wherever a PSU metal plant has come up, a metropolis has developed. Even within the case of RINL, the per capita of Gajuwaka area is the best within the State, he identified. “We urge the government to consider the from a holistic point of view,” stated Mr. Prasad.