The crash of the global markets on Monday will likely force the Indian government to either postpone or shelve the proposal to disinvest 10 percent of the government’s equity holding in Rashtriya Ispat Nigam Limited (RINL) to private investors, a senior government official said on Tuesday, August 25.
In view of the crash in commodity and equity prices, the 1,624 point drop in the Indian stock index and the erosion of margins faced by local steel mills, the interest in equities of steel producers like RINL is expected to be weak, the official said.
The trade unions operating at RINL have on Tuesday already asked for the government disinvestment plan for RINL to be “scrapped immediately” in view of the volatility in the stock markets, stating that the government needs to abandon plans to raise funds by selling off its stakes in government companies.
The Indian government has been planning to sell a part of its equity holding in RINL since 2013 but had to postpone it numerous times for various reasons.