Centre cites policy to reject union’s proposal to merge RINL with SAIL
The centre has rejected a proposal by the employees’ union of Rashtriya Ispat Nigam Ltd (RINL) for merging the company with state-owned Steel Authority of India Ltd (SAIL), Parliament was told on Tuesday.
The New Public Sector Enterprise (PSEs) policy for Atmanirbhar Bharat classifies strategic and non-strategic sectors. Public sector undertakings (PSUs) in non-strategic sectors shall be considered for privatisation, or they shall be closed, said Minister of State Finance Bhagwat Karat in Rajya Sabha.
As the policy puts steel manufacturing in the non-strategic sector, there is no scope to consider the merger of RINL with other Central PSEs, Karad told lawmakers in response to a question. Karad also cited a decision by the Cabinet Committee on Economic Affairs (CCEA) for rejecting the merger.
The centre recently changed the privatisation policy and barred PSUs from bidding for other Central PSEs on the block for privatisation. It has said that transfer of management control from the government to any other government organisation or state government may continue the “inherent inefficiencies” of state-run firms, citing such a transaction would defeat the purpose of the new PSE policy.
As per the changes made to the policy, (Central/State/Joint)/State Governments/Cooperative Societies controlled by the governments are not permitted to participate in the strategic disinvestment/privatisation of other PSUs as bidders unless otherwise specifically approved by the central government in public interest.
The Department of Investment and Public Asset Management (DIPAM) has appointed transaction adviser, legal adviser and asset valuer through a competitive bidding process, Karad said. The centre plans to sell its 100 per cent shareholding in RINL, also called Vizag Steel, along with RINL’s stake in its subsidiaries/joint ventures through the strategic disinvestment process.
Comments are closed.