With the workers unions at Rashtriya Ispat Nigam Limited (RINL) issuing a notice of an indefinite strike to the top management, insiders say the biggest worry looming large now is the loss of production.
Sources informed SteelMint that the unions are waiting for the government to issue the expression of interest (EoI) (for the 100% divestment), which may happen in a few weeks or a month’s time. Post-this development (EoI), the unions plan to launch the indefinite strike, it seems. As per a source, “The inside news is that the government is preparing the document and the unions are waiting for it to be released before going on the indefinite strike.”
Already, on March 9, the day after Finance Minister Nirmala Sitharaman reiterated the government’s stand on the divestment, a wildcat strike called by “outsiders” stopped employees from entering the premises, which led to two furnaces being shut down for the entire day.
Sources said that in February, average production was at a healthy 19,000 tonnes per day (tpd) and in March output would have easily crossed 19,500 tpd. However, because of the March 9 strike, along with the “indefinite” one looming on the horizon, insiders fear production will take a major hit. “An indefinite strike would mean a total blockade and stoppage of production for an indefinite period,” a source rued.
Who will throw hat into acquisition ring?
Meanwhile, insiders said, the buzz is that Vedanta or the Adani group could be evincing interest in throwing their hat into the acquisition ring. They are encouraged to say this with Adani Ports set to acquire 31.5% in Andhra Pradesh-based Gangavaram Port. RINL, located in Vizag, would be synergistic in terms of logistics.
On the other hand, Vedanta Group supremo Anil Agarwal had tweeted on February 3, “Govt. firm on its path of economic revival & the Cabinet decision to privatize RINL is a welcome move. Government has taken bold steps in Budget2021 with a big thrust on disinvestment, and we are on course to achieve PM’s goal of a USD 5TrillionEconomy.”
Agarwal had further tweeted that, “…Govt. should seize this opportunity to divest the selected PSUs which can be turned around by private players.”
Furthermore, the group has teamed up with London-based Centricus to create a USD 10-billion fund for investing in stake sales of public sector companies. “We are excited with the Union Budget’s strong focus on disinvestment and would like to participate in the exercise,” Agarwal had tweeted recently.
These tweets have led to speculations within RINL that Vedanta could be interested in participating in the divestment.
SteelMint has not spoken to either Vedanta or Adani group officials, and is merely reporting on the speculations in circulation.
Record 1.3 mnt exports in FY21
RINL is poised for a quantum jump in exports in FY2020-21. So far, with order bookings of more than 2 lakh tonnes already in hand in the current month, the PSU is looking to end the fiscal with an all-time high figure of 1.3 million tonnes of exports.
These exports are destined for many countries, including a few new shores and the shipments include both finished and semi finished products.
RINL’s liquid steel production in February, 2021 was at 5.32 lakh tonnes, marginally lower from the 5.49 lakh tonnes seen in January, 2021.
Total sales in February were at 3.84 lakh tonnes, with exports at 0.6 lakh tonnes. Sales in this month were higher compared to January’s 2.72 lakh tonnes. However, it has set a March sales target of around 5.5 lakh tonnes.
Inventory in February-end has risen to 4 lakh tonnes against January-end’s 3 lakh tonnes.
~ By Madhumita Mookerji
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