Andhra Pradesh Premier Y S Jagan Mohan Reddy on Wednesday announced that the state assembly would soon adopt a resolution calling on the Institute to withdraw its proposal to hold the Rashtriya Ispat Nigam Limited (RINL), also known as the Visakhapatnam Steel Plant.
Jagan said that they will make every effort to ensure that the Vizag steel industry, which is the opinion of the people of Andhra Pradesh, will not be sold to private groups under any circumstances. He also said that he is confident that the Institute will change its position in this regard.
The Prime Minister held an hour-long meeting with representatives of the various unions of the Visakhapatnam Steel Plant after strengthening workers’ vigor over the sale of the plant.
He said he had suggested that the Center reinstate the RINL lease on the steel mines in Odisha as a ploy to prevent the supply of steel contracts.
The prime minister said RINL was losing money due to a lack of captured mines and was forced to spend another $ 4,000 on a ton of steel. He said that he has written a letter to the Prime Minister, Narendra Modi, requesting that the steel mine held in the neighbouring province of Odisha be allocated to RINL.
He pointed out that the RINL had previously been allocated 51 per cent of the shares in the five steel mines in Odisha, 49 per cent of the shares in the Central government, the LIC and the Odisha Mineral Development Corporation.
Jagan said that these mines have high quality iron ore deposits amounting to 200 million tons, which is enough for the RINL for several years to come. However, the lease agreement for these mines expired a long time ago. If this agreement is renewed and the RINL issues are reinstated, this instrument will return to benefits, .
He also said that RINL has accumulated debt of ₹ 22,000 crore, including long-term loans worth ,000 12,000 crore and another 11,000 crore loan received from banks in terms of operating costs. Some banks had offered loans at a high interest rate of 14 percent.
The premier said he had proposed the conversion of long-term interest rates into stocks to reduce the interest rate burden. He also said that It will help RINL quickly overcome the burden of paying around ₹ 3,000 crore. This will benefit the company. The RINL can come out with a public issue and create shares listed on the stock list, so that banks can use the exit whenever they want.
The chief executive also suggested another solution to remove the RINL from the loss. He also said that the steel industry has about 20,000 hectares of land, and 7,000 hectares are still out of working. The national government will give permission to steel structures to change land use, because they are under state control. RINL administrators can auction off these vacant lands and invest the money back on a metal plant. It will increase the price of the metal.
The Prime Minister called on the leaders of the Bharatiya Janata Party, too, to support the proposals and to step up with the Center to end the independence process. He said that they will also do their best to achieve this.
Jagan, however, urged steel company employees not to strike but to work well. He said that under any circumstances, they cannot create the image that this plant was lost due to lack of production.