India’s cabinet of ministers approves privatization of RINL steel mill

Wednesday, 03 February 2021 16:13:14 (GMT+3)   |   Kolkata
       

India’s cabinet of minister has approved the privatization of state-run steel producer Rashtriya Ispat Nigam Limited (RINL) through strategic sale of equity currently held by the government, a government official said on Wednesday, February 3.

The official said that, in the course of approving the strategic disinvestment of RINL, the cabinet has delegated powers to the Alternate Mechanism under the Ministry of Finance to decide whether subsidiaries of RINL will be part of any transaction, depending on feedback from potential investors.

RINL operates a 7.3 million mt per year long product steel mill in the southern Indian port town of Vishakhapatnam. The company also operates two raw material producing subsidiaries - Odisha Mineral Development Company Limited and Birsa Stone Lime Company Limited.

RINL also operates RINLMOIL Ferro Alloys Private Limited, as an equal joint venture partner with manganese miner MOIL Limited and RINL Powergrid TLT Private Limited, also as an equal joint venture partner with power distribution company Power Grid Corporation Limited.

The move to put up RINL for privatization by the government also casts uncertainty over a proposed joint venture for production of high grade specials steel through a joint venture of RINL and South Korean steel producer POSCO. A memorandum of understanding (MoU) for such a joint venture had already been signed between the two companies, and a working group of officials from both steel producers set up to facilitate the collaboration.

“We cannot say anything on the future of the joint venture because the decision of disinvestment of equity in RINL is a decision of the government,” a RINL official said.


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