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Andhra Pradesh Chief Minister YS Jagan Mohan Reddy wrote to Prime Minister Narendra Modi and sought an appointment to suggest options to revive Rashtriya Ispat Nigam Ltd (RINL), Visakhapatnam.The Chief Minister said he'll bring an all-party delegation, including representatives of Trade Unions to represent their concerns.The letter read, "Visakhapatnam Steel Plant (RINL) - Reply of Nirmala Sitharaman, Union Minister for Finance, in parliament on 8-3-2021 regarding 100 per cent strategic disinvestment by way of privatization - Request for Appointment at an early date for personally explaining the options to revive and meeting an all-party delegation led by me to express the concerns directly.""Sir, Kindly recall that in my letter dated 06-02-2021 addressed to you I had clearly mentioned the problems being faced by Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam, suggested various solutions to revive the same and requested to reconsider the decision of 100% strategic disinvestment. I had also addressed the union Minister for steel offering my suggestions to revive RINL and make it financially strong," the letter read."In the meantime, Hon'ble Union Minister for Finance, Smt. Nirmala Sitharaman in her reply in the Lok Sabha on 08-03-2021 stated that the Govt of India would go ahead with the plan of 100% disinvestment of Govt of India`s equity in RINL along with RINL`s stake in subsidiaries / joint ventures through strategic disinvestment by way of privatisation. It is a matter of great concern for the people of Andhra Pradesh, Employees of RINL and other stakeholders," it said.I would like to bring to your kind notice once again the importance of reviving RINL, its association with the sentiments of the people of Andhra Pradesh and various options available to revive the plant and its sustainability in future," it said.The Chief Minister further said in the letter, "As you are aware Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), is a Navratna Company under the Ministry of Steel, Govt. of India. It is the largest public-sector industrial unit in the state creating employment opportunities for close to around 20000 people directly and many other indirect employment opportunities in the city of Vishakhapatnam.""It is India's first shore-based integrated Steel Plant and a producer of long steel products catering to the requirements of the Construction, Infrastructure, Manufacturing & Automobile sectors. This plant was realized only after many sacrifices by our people. The people of my state rallied for the Visakhapatnam Steel Plant in which 32 people have laid down their lives. On 17th April 1970, the then Prime Minister of India, announced the Government's decision to establish a steel plant at Visakhapatnam culminating the decade-long public agitation "Visakha Ukku-Andhrula Hakku" in the undivided Andhra Pradesh," he said."I would like to draw your kind attention towards the fact that the plant had a good performance between 2002 to 2015 earning profits with positive Net worth. The plant has pragmatically turned-around in 2002 after being reported to BIFR as a sick company. The company has around 19700 acres of land currently and the valuation of these lands alone could exceed one lakh crore rupees due to the location of the plant in the urban area and rapidly expanding urban sprawl," the Chief MInister said.The chief minister said that RINL currently has a capacity of 7.3 Million Tonnes and has taken up plant modernisation and capacity expansion recently which made the plant to borrow loans from banks to take up the expansion. Owing to the unfavourable steel cycle globally the company was making losses since 2014-15 and was finding it difficult to service the debt. One of the major structural issues that also leads to the high cost of production is the absence of captive mine thereby affecting profitability."Sir, I can emphatically say that the plant will again become a profitable venture given some support from the Government of India instead of taking the disinvestment route by implementing some turnaround measures such as allotting captive iron ore mines to bring down the input costs, swapping high-cost debt with low-cost debt, converting debt into equity through equity conversion and monetization of vacant land," he added.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Andhra Pradesh Chief Minister YS Jagan Mohan Reddy wrote to Prime Minister Narendra Modi and sought an appointment to suggest options to revive Rashtriya Ispat Nigam Ltd (RINL), Visakhapatnam. ...