Steel body demands RINL-SAIL merger

Visakhapatnam: Representatives of the executives association of RINL have asked the government to merge Rashtriya Ispat Nigam Limited (RINL) with Steel Authority of India Limited (SAIL) to tide over the present crisis and make a turnaround of the company.

Addressing a joint press conference in Visakhapatnam on Monday, general secretary of Steel Executive Association K.V.D. Prasad said they have also asked for timely payment of wages and withdraw the VRS proposals.

Highlighting the dire straits of the plant, which employed around 30,000 workers, both permanent and contract, Prasad criticised the coalition government for failing to address the financial struggle of the employees. He noted that wages have not been paid for nearly a year, exacerbating the financial strain on workers and their families.

Despite these challenges, he pointed out that the plant's production had increased from 4 million tonnes to 6 million tonnes in 2021, indicating potential for profitability.

He expressed optimism regarding the plant’s expansion plans but acknowledged that raw material shortages, particularly due to the ongoing Gangavaram strike, have hindered operations. The strike has reportedly led to a production loss of approximately Rs 3,000 crore.

The secretary emphasised the necessity of merging RINL with SAIL, arguing that such a move would significantly benefit the steel plant and its workforce.

He cited SAIL’s capacity for expansion and its access to captive mines as crucial advantages that could help stabilise RINL’s operations and profitability.

He further said that he and other Steel Executives Association (SEA) leaders have appealed to the Central government to address these issues in upcoming Cabinet meetings, urging a reconsideration of the steel plant’s strategic status to prevent its privatisation.