In a recent press conference, Kashi Viswanath Raju, an independent director at Steel Authority of India Limited, addressed the potential merger of the Vizag Steel Plant, also known as Rashtriya Ispat Nigam Limited, with SAIL. This discussion comes at a crucial time for the steel industry in India, as stakeholders seek innovative solutions to enhance production efficiency and reduce costs. Raju has been proactive in bringing this matter to the attention of key government officials, including the Union steel minister, and is optimistic about the merger's prospects.
Raju highlighted that merging RINL with SAIL could offer a long-term solution to various challenges faced by the Vizag Steel Plant. He has participated in review sessions with Members of Parliament and Members of the Legislative Assembly at the invitation of Andhra Pradesh's Minister Nara Lokesh.
During these discussions, Raju underscored the financial benefits of the merger, which include:
- Cost Reduction: Raju indicated that the merger could lead to a significant reduction in steel costs by at least ₹10,000 per metric ton. Such a decrease would not only benefit manufacturers but also consumers, making steel more affordable across the board.
- Annual Savings on Coal Procurement: The merger could result in an estimated annual saving of ₹1,200 crore on coal procurement. This cost efficiency is critical, as coal is a major input in steel production, and reducing its procurement costs could significantly enhance the financial viability of the merged entity.
During the press conference held at the Visakha district BJP office, Raju praised the efforts of the Visakha Ukku Parirakshana Porata Committee, which has maintained a non-disruptive approach to RINL's production processes. Their cooperative stance has been crucial in ensuring that production remains stable while discussions about the merger progress.
Raju expressed optimism that minor adjustments in SAIL's policies could facilitate the merger process. He believes that with the right political and administrative support, the merger could be implemented smoothly, benefiting both organizations and the broader steel industry in India.
In light of the ongoing discussions, Raju announced an upcoming meeting in New Delhi to address the issue of privatization concerning the Vizag Steel Plant. This meeting is expected to gather various stakeholders, including government officials and industry experts, to explore the future of RINL in the context of potential privatization or merger.
