KOLKATA: The state-owned steel giants Steel Authority of India
Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) have
been advised to merge for further heights. The Committee on Public
Undertakings, a body of Lok Sabha members
has echoed its proposal mentioning that the step will
assist the two companies gain global platform and mitigate production cost.
“”While reiterating their recommendation on
revisiting the proposal for merger of RINL with SAIL, the Committee desires the government to
clearly specify its stand on the issue and apprise it on the same”, Committee on Public Undertaking has said in a recent report.
Being one of the principal domestic steel companies, SAIL presently
has a competence to turn out 14.6 million tons per annum (MTPA). It has
embarked on a capacity expansion to take it to 26.2 MTPA. Vizag-based RINL presently
has a efficiency of 2.9 MTPA, which is anticipated to move up to 6.3 MTPA in
the next fiscal.
The merger would aid the two state-run steel makers to attain
international size of business, it had formerly scrutinized. The panel had also
said the merger would also allow them to synergize operation and lower the cost
of production.
The report, however, said “The Committee regrets to note
that the Action Taken Reply of the government is completely silent on this
aspect.”
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