CPI MP Binoy Viswam seeks Scindia’s direction to SAIL to participate in new business model

New Delhi [India], April 17 (ANI): Communist Party of India (CPI) Rajya Sabha MP Binoy Viswam has written a letter to Union Steel Minister Jyotiraditya Scindia to draw his attention towards the process of disinvestment by way of privatisation of the Rashtriya Ispat Nigam Ltd and urged him to immediately direct SAIL to take part in the EOI process and ensure that there is no discrimination against public sector companies in the process.

Binoy Viswam in a letter to Jyotiraditya Scindia said, “As a member of the Parliamentary Committee on Public Undertakings, I would like to draw your attention towards the process of disinvestment by way of privatisation of the Rashtriya Ispat Nigam Ltd.”
The RINL, with a capacity of 7.3 million tonnes and a revenue of over twenty thousand crores has invited Expressions of Interest from companies to fund its working capital by 15 April 2023.

“RINL had recorded its highest ever sales of 28,082 crores and a gross margin of 3,575 crores in the financial year of 2021-2022 despite facing several challenges from COVID-19 pandemic, abrupt halt on productive activities and an acute global shortage of coking coal”, he added.

CPI Upper House MP further said that the Vizag Steel Plant is the only steel plant that has not been allotted at least one captive iron ore mine by the Union Government despite the plant registering profits, which increases the cost of production when compared with other plants. The RINL is of strategic and economic importance to the country and should remain with the state or another PSU should be allowed and promoted in the EOI and acquisition process.

“Steel Authority of India Ltd. has its own iron mines and does not have any production unit for steel in the southern part of the country. SAIL also imports coking coal from the Gangavaram Port near Vizag Stee) Plant and transports it by rail, which increases the cost of production. If these inefficiencies are removed and SAIL enters into an agreement with RINL, it will be economic in terms of logistics and utilisation of iron ore, for the benefit of both. At the same time, RINL will also benefit as the cost of production will be significantly reduced”, he added.

Binoy Viswam urges Steel Minister to immediately direct SAIL to take part in the EOI process and ensure no discrimination against public sector companies in the process.

“Considering the above factors relating both to the economy and strategic importance of RINL, I urge you to immediately direct SAIL to take part in the EOI process and ensure no discrimination against public sector companies in the process. This matter should be accorded urgency given the deadline of April 15, 2023,” the Rajya Sabha MP added.