Despite the periodic posturing by the central government on the merger of steel PSUs, its stand remains evasive and non-committal.
The country has currently three public-sector companies – Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL) and NMDC Steel Limited (NSL). RINL, the country’s premier Integrated Steel Plant, is struggling for survival. The Centre recently approved an equity infusion of Rs 11,440 crore capital in it but the merger seems to be the only solution of its woes.
So, the larger question being asked now is: is the government really planning to merge the three entities? But the pity is, the Modi government remains evasive on the question of merger.
The same question was recently asked in the Rajya Sabha but the government’s response only added to confusion. The Minister of State for Steel, Bhupathiraju Srinivasa Varma, prevaricated on the issue by saying, the Government undertakes periodic review of public sector undertakings (PSUs) and takes measures necessary to support them. He went to the extent of saying that merger of these entities is presently not under consideration.
The issue of merger has been lingering for a long time. Even last year, it was claimed that the steel ministry is “actively working” towards the merger of RINL with Steel Authority of India Ltd (SAIL), the largest government-owned steel producer as RINL, often called Vizag Steel, is seriously sick. But no headway has been made in this direction. The steel is a core sector and the central government needs to pre-empt this looming crisis, sooner the better.
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