The Steel Executives Federation of India (SEFI) has called on the Ministry of Steel to merge several state-run steel companies, including Rashtriya Ispat Nigam Limited (RINL), Ferro Scrap Nigam Limited (FSNL), and the Nagarnar steel plant, with the Steel Authority of India Limited (SAIL), in a move aimed at creating a mega public sector undertaking.
The federation, which represents key players like SAIL, RINL, MECON Ltd., NMDC Iron and Steel Plant, and the National Mineral Development Corporation, submitted a proposal advocating for this consolidation instead of privatization. They argued that combining the unique strengths of these firms could significantly aid SAIL in reaching its target of 35 million tonnes of production capacity by 2030. SEFI highlighted ongoing issues within these companies, such as inadequate human resources and raw material shortages, which have undermined their financial viability.
The Nagarnar steel plant in Bastar, with a capacity of 3 million tonnes, faces significant staffing challenges, operating with only 200 officers and 1,000 employees. MECON Ltd., tasked with running the plant, lacks prior experience in steel plant operations, exacerbating operational difficulties. Despite its skilled workforce, RINL, which has a production capacity of 7 million tonnes but is operating at around 60% capacity, struggles with iron ore shortages and high raw material costs.
The federation also questioned the rationale behind FSNL’s disinvestment, pointing out the company's reserves of ₹170 crore, movable assets worth ₹100 crore, and a substantial work order of more than ₹1,000 crore.
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