Assures continued efforts to protect interest of RINL employees
BJP Rajya Sabha MP Mr.GVL Narasimha Rao met the Chairman and Managing Director of Steel Authority of India Limited (SAIL) Mr. Amarendu Prakash and discussed possibility of a merger of RINL with SAIL to improve RINL’s physical and financial performance.
He said assistance from SAIL to operate a third blast furnace would increase production of RINL. It may be recalled that two weeks ago, RINL executive and employee unions met BJP MP Mr. GVL Narasimha Rao and requested his intervention to seek either RINL’s merger with SAIL or support from SAIL to operate third blast furnace of RINL. The latest meeting of MP GVL with CMD of SAIL was held in this background.
In his meeting with SAIL CMD, Mr. Amarendu Prakash informed the MP that he had been assisting RINL in the past two years by smoothening raw material supplies and working capital by taking up these issues with the Union ministers for Steel, Coal and Finance and senior officials of the Steel Ministry and PSUs like National Mineral Development Corporation (NMDC), Coal India etc.
MP GVL informed that merger of RINL with SAIL will be a win-win for both the PSUs which are under the same Ministry of Steel.
SAIL would benefit as a merger would immediately enhance its production capacity, allow it further to expand capacity as a large land bank of 19,650 acres is available with RINL and help it to reduce logistics cost drastically as RINL is a shore based plant with access to two ports.
Currently, SAIL transports raw materials to its plants faraway from landing ports and in turn transports finished products from faraway plants to the markets in the Southern and Western states. This additional logistics cost can be avoided by a merger of RINL with SAIL Mr. GVL opined.
Merger would help RINL immensely and help it to reduce its production cost by getting raw materials from SAIL’s captive iron ore and coal mines and further provide it access to the much needed working capital and at a lower interest rates.
