Centre's bid to privatise Visakhapatnam Steel Pant 2 years old

New Delhi: The plan to privatise the Rashtriya Ispat Nigam Ltd, Visakhapatnam, is neither new nor the latest. The Centre had kept it in mind for long. In fact, the RINL privatization process has been set in motion some two-and-half years ago.

Following the Centre's plans to privatize PSUs, the RINL came up for discussion in 2018 itself going by the government records. Representatives of the POSCO and Hyundai proposed a Greenfield Steel Plant in the premises of the RINL and had sent proposals too to the Government.

Both the groups proposed to establish the Greenfield Steel Plant at an estimated cost of Rs 30,000 crore.

An official team from both the companies along with the Ambassador of South Korea to India visited RINL and participated in a meeting with representatives of RINL, NMDC and Ministry of Steel on October 22, 2018. Subsequently, a team of officials from POSCO visited RINL on July 9, 2019, September 23, 2019 and February 20, 2020 in connection with setting up of the plant.

A non-binding MoU has also been signed in October 2019 between RINL and POSCO. Pursuant to the MoU, a Joint Working Group (JWG) has been formed for exchange of information. The shareholding pattern has not been determined here so far.

However, as per MoU, POSCO, wishes to have at least 50 per cent shareholding while the shareholding of RINL, is to be worked out on the basis of valuation of RINL in-kind contribution of the land for setting up the plant. These facts came to light in the reply of Union Minister of Steel Dharmendra Pradhan to a question of YSRCP MP and its Parliamentary Party leader V Vijayasai Reddy in the Rajya Sabha on Wednesday.

The issue of privatisation of the RINL has led to an eruption of resentment in AP against the BJP leadership as the plant had been set up over the blood and sweat of the Andhras who fought for it with their slogan "Visakha Ukku, Andhrulu Hakku" some five decades ago. The Vizag Steel Plant has changed the profile of Visakhapatnam becoming the city's icon. The unit is not just the pride of the city but also has a deep emotional bond with Vizagites.

The recent news of its privatization has led to a spurt of protests which are continuing against the same.