Lok Sabha Question No. 2191 (UNSTARRED), answered on 2021-03-08
Subject: Privatisation of Rashtriya Ispat Nigam Limited
Ministry: STEEL
Asked by: Kinjarapu Ram Mohan Naidu, Balashowry Vallabbhaneni, Margani Bharat

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.2191

FOR ANSWER ON 08/03/2021

## PRIVATISATION OF RASHTRIYA ISPAT NIGAM LIMITED

2191.  SHRI RAM MOHAN NAIDU KINJARAPU:

SHRI BALASHOWRY VALLABHANENI:

SHRI MARGANI BHARAT:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government has recently taken a decision to privatise Rashtriya Ispat Nigam Limited (RINL) in Visakhapatnam and if so, the details thereof along with the reasons therefor;
- (b) the details of assets of RINL and investment made by the Government along with its outstanding debt;
- (c) the details of financial, physical , marketing, production and other performance of RINL during the last five years, year-wise and category-wise;
- (d) whether the said decision has been  taken after consulting the State Government and if so, the details thereof;
- (e) whether any consultations have been held with RINL trade union leaders and other stakeholders; and
- (f) if  so, the details of the steps taken/ proposed to be taken to ensure their job protection/ security given to workers after the privatisation of RINL?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

- (a) The Cabinet Committee of Economic Affairs (CCEA), in its meeting held on 27.01.2021, has accorded ín-principle' approval for 100% disinvestment of Government of India   (GOI)  shareholding  in  Rashtriya  Ispat  Nigam  Limited  (RINL) (also called Visakhapatnam Steel Plant or Vizag Steel) along with RINL's stake in its Subsidiaries/Joint Ventures through strategic disinvestment by way of privatisation.
- (b) The details are as following:-
- A. Assets of RINL:

(Rs. in crores)

Gross Block of Property, Plant & Equipment, intangible assets (as on 31.12.2020)

- B. Investment made by Government:-

(Rs. in crores)

| Particulars          |   As on 31.12.2020 |
|----------------------|--------------------|
| Equity share capital |            4889.85 |

- C. Outstanding debts:-

(Rs. in crores)

| Particulars   |   As on 31.12.2020 |
|---------------|--------------------|
| Total:        |              21236 |

Contd………..2/-

32022.32

- (c) The performance of RINL during the last 5 years has been as following:-
- i) Financial performance:
- ii) Physical and Marketing Performance:

| Financial Year               |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 |
|------------------------------|-----------|-----------|-----------|-----------|-----------|
| Turnover (Rs. Crs)           |  10059.3  |  12317.3  |  14459.7  |  20338.1  |  15819.2  |
| Reserves & Surplus (Rs. Crs) |   4983.35 |   3679.81 |   2331.11 |   2462.43 |  -1618.06 |
| PAT (Rs. Crs)                |  -1420.64 |  -1263.16 |  -1369.01 |     96.71 |  -3910.17 |
| Net Worth (Rs. Crs)          |   9873.2  |   8569.66 |   7220.96 |   7352.28 |   3271.79 |

('000 MT)

| Saleable Steel ('000 MT)   |   FY 2015-16 |   FY 2016-17 |   FY 2017-18 |   FY 2018-19 |   FY 2019-20 |
|----------------------------|--------------|--------------|--------------|--------------|--------------|
| Production                 |         3513 |         3847 |         4500 |         5000 |         4452 |
| Total Sales                |         3728 |         3702 |         4488 |         4911 |         4278 |

(d)to(f):  While  deciding  the  terms  and  conditions  of  the  strategic  sale,  legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the Share Purchase Agreement (SPA).  The State  Government  is  consulted  in  specific  matters  as  and  when  needed  and  their support is also solicited in the matters that require their intervention.

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