Question : Privatisation of Rashtriya Ispat Nigam Limited

(a) whether the Government has recently taken a decision to privatise Rashtriya Ispat Nigam Limited (RINL) in Visakhapatnam and if so, the details thereof along with the reasons therefor;
(b) the details of assets of RINL and investment made by the Government along with its outstanding debt;
(c) the details of financial, physical , marketing, production and other performance of RINL during the last five years, year-wise and category-wise;
(d) whether the said decision has been taken after consulting the State Government and if so, the details thereof;
(e) whether any consultations have been held with RINL trade union leaders and other stakeholders; and
(f) if so, the details of the steps taken/ proposed to be taken to ensure their job protection/ security given to workers after the privatisation of RINL?

THE MINISTER OF STEEL (SHRI DHARMENDRA PRADHAN)

(a) The Cabinet Committee of Economic Affairs (CCEA), in its meeting held on 27.01.2021, has accorded ín-principle’ approval for 100% disinvestment of Government of India (GOI) shareholding in Rashtriya Ispat Nigam Limited (RINL) (also called Visakhapatnam Steel Plant or Vizag Steel) along with RINL’s stake in its Subsidiaries/Joint Ventures through strategic disinvestment by way of privatisation.

(b) The details are as following:-

A. Assets of RINL:
(Rs. in crores)
Gross Block of Property, Plant & Equipment, intangible assets
(as on 31.12.2020) 32022.32


B. Investment made by Government:-
(Rs. in crores)
Particulars As on 31.12.2020
Equity share capital 4889.85

C. Outstanding debts:-
(Rs. in crores)
Particulars As on 31.12.2020
Total: 21236.01

Contd………..2/-

(c) The performance of RINL during the last 5 years has been as following:-

i) Financial performance:

Financial Year 2015-16 2016-17 2017-18 2018-19 2019-20
Turnover (Rs. Crs) 10059.34 12317.32 14459.67 20338.06 15819.24
Reserves & Surplus (Rs. Crs) 4983.35 3679.81 2331.11 2462.43 -1618.06
PAT (Rs. Crs) -1420.64 -1263.16 -1369.01 96.71 -3910.17
Net Worth (Rs. Crs) 9873.20 8569.66 7220.96 7352.28 3271.79

ii) Physical and Marketing Performance:
(‘000 MT)
Saleable Steel
(“000 MT) FY 2015-16
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
Production 3513 3847 4500 5000 4452
Total Sales 3728 3702 4488 4911 4278

(d)to(f): While deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the Share Purchase Agreement (SPA). The State Government is consulted in specific matters as and when needed and their support is also solicited in the matters that require their intervention.

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