Lok Sabha Question No. 170 (UNSTARRED), answered on 2022-07-18
Subject: Disinvestment of RINL
Ministry: FINANCE
Asked by: Kinjarapu Ram Mohan Naidu

## G O V ERN M EN T O F I N D I A

## M I N I STR Y O F FI N A N C E DEPARTM EN T O F I N VESTM EN T AN D PUBLI C ASSET M AN AG EM EN T (D I P A M )

## LO K SABH A UN STARRED Q UESTI O N N o. 170

TO BE AN SW ERED O N M O N D A Y,JU LY 18,2022

Ashadha Chai t r a 27,1944 ( Saka)

## Di si nvest m entofRI N L

## 170. SH RIRAM M O H A N N A I D U KI N JA RA P U :

W i l lt he M i ni st erofFI N A N C E be pl eased t o st at e:

- (a) t he det ai l s ofthe basi s on w hi ch t he deci si on t o di vest100 percentof Rasht r i ya I spatN i gam Li m i t ed (RI N L)w as t aken;
- (b) w het her t he di si nvest m entdeci si on w as based on r ecom m endat i ons of t he N I TI Aayog and i fso,t he det ai l s oft he N I TIA ayog st udy/r epor t ;
- (c) w het her 100 per cent di si nvest m ent of m aj or st eel PSU l i ke RI N L i s not a vi ol at i on ofdi si nvest m entpol i cy ofr et ai ni ng P SU s i n t he st r at egi c sect or ;
- (d) I f so,t he det ai l s of t he f i nall i st of P SU s i n each ofthe st r at egi c sect or s t hat w i l l notbe di si nvest ed orpr i vat i zed butr et ai ned by t he G over nm ent;
- (e) The det ai l ed expl anat i on oft he w ay t hi s l i stw as ar r i ved at ;and
- (f ) The basi s on w hi ch RI N L w as l ef t out of t hat l i st and t he det ai l s ofstakehol der s i nvol ved i n m aki ng and al so f i nal i zi ng t hatl i st ?

## AN SW ER

## M I N I STER O F STA TE I N TH E M I N I STRY O F FI N A N C E (D R.BH A G W A T KI SH A N RA O KARAD)

- (a)t o ( f ) : The Cabi net C om m i t t ee of Econom i c A f f ai r s (C C EA ) ,i n i t s m eet i ng hel d on

27. 01. 2021,had accor ded ' i n- pr i nci pl e'appr ovalf or 100 % di si nvest m ent of G over nm ent of I ndi a (G O I ) shar ehol di ng i n Rashtri ya I spat N i gam Li m i t ed (RI N L) (al so cal l ed Vi sakhapat nam Steel Pl ant or Vi zag Steel ) al ongw i t h RI N L' s st ake i n i t s Subsi di ar i es / Joi nt Ventures t hr ough st r at egi c di si nvest m ent by w ay of pri vat i sat i on. The N I T I Aayog al ong w i t h other concerned M i ni st r i es/D epar t m ents of G over nm ent of I ndi a w er e consul t ed w hi l e t aki ng t he deci si on for st r at egi c di si nvest m ent of Rashtri ya I spat N i gam Li m i t ed (RI N L) . Fur t her ,t he G over nm ent had i nt r oduced N ew Publ i c Sector Ent er pr i se (PSE) Pol i cy for At m ani r bhar Bharat w hi ch has been noti f i ed on 4 t h February, 2021 and i s appl i cabl e t o Central Publ i c Sector Enterpr i ses (C P SEs) , Publ i c Sector Banks (PSBs) and Publ i c Sector I nsur ance Com pani es (PSI C s) . A s per t hi s pol i cy, exi st i ng Publ i c Sector Enterpr i ses (PSEs) have been broadl y cl assi f i ed under St r at egi c and N onst r at egi c Sectors.I thas al so been l ai d dow n t hati n st r at egi c sect or s,onl y a bare m i ni m um presence of t he exi st i ng PSEs atH ol di ng C om pany l evelw i l l be r et ai ned underG over nm entcont r ol .The r em ai ni ng ent er pr i ses i n st r at egi c sectorw i l lbe consi der ed f or pr i vat i sat i on orm ergerorsubsi di ar i zat i on w i t h another CPSEs or for cl osur e. PSEs i n t he non- st r at egi c sectors shal l be consi der ed f orpr i vat i sat i on,w her e f easi bl e,ot her w i se such ent er pr i ses shal l be consi der ed for cl osur e. St eel m anuf act ur i ng fal l s i n t he non- st r at egi c sector.The deci si on of t he G over nm ent t o pri vat i ze Rashtri ya I spat N i gam Li m i t ed (RI N L)i s i n l i ne w i t h t he N ew PSE Pol i cy.

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