The Visakha Steel Executives Association (VSEA) has urged the Union Government to initiate an MoU for the re-merger of RINL-Visakhapatnam Steel Plant (RINL-VSP) in collaboration with Steel Authority of India Ltd (SAIL). In a recent council meeting held in New Delhi, the Steel Executives Federation of India (SEFI) members also appealed to the government to construct a mega multi-purpose plant by consolidating all viable steel plants.
During the meeting, VSEA President Katam S.S. Chandra Rao and Vice-President Chandra Venkateswara Rao presented their case for the re-merger of RINL-VSP and Nagarnagar steel plants with SAIL, drawing inspiration from the successful MoU between RINL-VSP and Jindal Steel & Power Limited (JSPL).
Mr. Chandra Rao elaborated on the potential benefits of such a merger, emphasizing the immediate relief and gains it would bring to both SAIL and RINL. He further stressed the importance of SEFI working towards establishing a similar MoU model for the proposed re-merger.
With regards to the steel sector’s crucial role as a major industry in the country, SEFI members urged the Union Government to preserve its significance. They highlighted the need for the construction of a mega multi-purpose plant that merges various steel plants, ensuring the sector’s growth and development.
SAIL, in its quest to increase capacity to 10 MTPA with an investment of ₹1 lakh crore, faces significant financial constraints in the future. With the government’s unwillingness to provide financial support, SAIL will have to rely on loans from banks, encountering challenges similar to those faced by RINL-VSP. Therefore, a merger presents the most viable solution for both SAIL and RINL, as well as other affiliated organizations.
In conclusion, the Visakha Steel Executives Association, along with the Steel Executives Federation of India, urges the Union Government to prioritize the re-merger of RINL-Visakhapatnam Steel Plant with Steel Authority of India Ltd. This strategic move will facilitate the finding of common ground, leading to mutual benefit for all parties involved. By incorporating an efficient and effective MoU model, the re-merged entity can expect immediate results, ensuring a prosperous future for the steel industry in India.