In view of the Central Government’s decision on privatising the Rashtriya Ispat Nigam Limited (RINL) – Vizag Steel Plant (VSP), the Union Finance Ministry has expedited the privatisation proposal. In the latest, the Central Government has invited tenders from merchant bankers and legal advisors to execute strategic privatisation of the VSP, setting the last date for inviting bids as 28 July. as Govt. invites bids from transaction advisors
The ongoing privatisation strategy by the Centre aims to complete the strategic sale of Bharat Petroleum Corporation Ltd. (BPCL), Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd., Pawan Hans, Air India among others by March 2022. While the Central Government is steadfast in its decision and is inviting bids from transaction advisory’s to materialize the privatisation, direct beneficiaries, employees, and workers came together to protest at the RINL complex and several pockets of Vizag city on Thursday morning.
The VSP privatisation is being undertaken by the Department of Investment and Public Asset Management (DIPAM). As per the document floated by the DIPAM, the government would appoint one transaction advisor from reputed merchant bankers or consulting firm for providing advisory services to DIPAM and managing the strategic disinvestment of the Government’s stake in RINL, along with RINL’s stake in its subsidiaries/joint ventures. The document also said that a law firm as a legal advisor for facilitating transactions would be appointed.
This invitation for tenders comes after a recent approval by the Cabinet Committee of Economic Affairs (CCEA) for 100 percent VSP privatisation on 27 January 2021. The Committee also gave a nod for strategic disinvestment by way of privatisation for RINL’s stake in other subsidiaries and joint Ventures.
Recently, going against the Central Government’s decision of privatising the Visakhapatnam Steel Plant, the Andhra Pradesh State Government passed a resolution opposing it. On 20 May 2021, the Andhra Pradesh Legislative cabinet led by the Minister of Industries, Mekapati Gautam Reddy, passed the resolution unanimously to oppose the privatisation of VSP. Earlier, Andhra Pradesh Chief Minister, YS Jagan Mohan Reddy also wrote to Prime Minister, Narendra Modi, seeking an appointment to explain to him the ground reality of the situation and discuss alternative revival plans. The AP CM also went to an extent of bringing an all-party delegation and representation of various trade unions to Delhi to convince the Central Government
against their decision and halt the privatisation process.
With all efforts at bay, and with the cooperation of the Joint Action Committee of trade unions thousands of workers took to streets blocking traffic on the National Highway (NH-16) in the past and similar efforts have erupted once again immediately after the Government inviting bids for transaction advisors.
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