Lok Sabha Question No. 281 (STARRED), answered on 2022-03-23
Subject: Rashtriya Ispat Nigam Limited
Ministry: STEEL
Asked by: Kinjarapu Ram Mohan Naidu, Srinivas Kesineni

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## STARRED QUESTION NO.*281

## FOR ANSWER ON 23/03/2022

## RASHTRIYA ISPAT NIGAM LIMITED

- *281.  SHRI RAM MOHAN NAIDU KINJARAPU: SHRI KESINENI SRINIVAS: Will the Minister of STEEL be pleased to state: (a) whether  the  Government  is  aware  that  20,000  acres  of  fertile  agricultural  land was acquired for the Rashtriya Ispat Nigam Ltd. (RINL), Visakhapatnam in accordance with Section (f) (iv) of the Land Acquisition Act, 1894, to be used exclusively for 'public purpose'; (b) if so, whether the transfer of aforesaid land to a private entity is legitimate; (c) if so, the details thereof; (d) the details of the criteria according to which the Government plans to transfer the land acquired for public purpose to a private entity; (e) the details of the net profits made by all Steel Public Sector Undertakings (PSUs) in the country during the last ten years; (f) whether  the  Government  has  not  allotted  a  captive  iron  ore  mine  to  the  RINL even after the aforesaid plant significantly increased its profits; and (g) if so, the details thereof? ANSWER THE MINISTER OF STEEL (SHRI RAM CHANDRA PRASAD SINGH) (a)to(g):  A Statement is laid on the Table of the Lok Sabha.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (G) OF THE LOK SABHA STARRED QUESTION NO. *281 FOR ANSWER ON 23/03/2022 TABLED BY SHRI RAM MOHAN NAIDU KINJARAPU AND SHRI KESINENI SRINIVAS, MEMBERS OF PARLIAMENT REGARDING 'RASHTRIYA ISPAT NIGAM LIMITED'

(a)to(d):  The  acquisition  of  land  for  Visakhapatnam  Steel  Plant  was  done  by  Govt.  of Andhra  Pradesh  as  per  the  Visakhapatnam  Steel  Project  (Acquisition  of  Lands)  Act, 1972, which provided that the State Govt. of Andhra Pradesh may acquire any land in the Project area for Project purpose and for any purpose incidental to or connected with the Visakhapatnam Steel Project.

Accordingly, 11,794 acre of Private land was acquired by the State Government for the Steel Project in various stages in the name of Ministry of Steel, Govt. of India and remaining  9798  acre  of  State  Government  Land  was  also  transferred  for  this  Project totalling to 21592 acre. Subsequently, a Power of Attorney was executed by Ministry of Steel in favour of Rashtriya Ispat Nigam Ltd. (RINL/VSP) in the year 1983. Later, land to the  extent  of  2,588.90  acre  was  given  to  various  agencies namely  Railways,  Govt.  of Andhra Pradesh for Gangavaram Port Ltd. & NHAI. Presently, 19,703.1 acre of land is under possession of RINL/VSP for the purposes of Steel Project. Steel Production has been going on since 1992 at RINL-VSP.

The  Cabinet  Committee  on  Economic  Affairs  (CCEA),  in  its  meeting  held  on 27.01.2021, has accorded 'in-principle' approval for 100 % disinvestment of Government of India (GOI) shareholding in Rashtriya Ispat Nigam Limited (RINL) along with RINL's stake  in  its  Subsidiaries/Joint  Ventures  through  strategic  disinvestment  by  way  of privatisation. The 'Project purpose' under proposed disinvestment would not change and no decision yet on mode of transfer of land has been taken. This Strategic disinvestment of Government of India's equity in RINL would lead to infusion of capital for optimum  utilization, expansion  of capacity, infusion of appropriate technology and better management practices with resultant higher production and productivity and expansion of direct and indirect employment opportunities. These measures will help realise true potential of RINL leading to much greater contribution to the economic growth of the nation thereby serving larger public purpose. (e)to(g): The details of the net profits made by Central Steel Public Enterprises namely Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL) during the last 10 year are at Annexure . Further,  RINL  has  not  increased  its  profits  during  the  last  ten  years.  RINL cumulative losses were Rs. 7122.25 Cr. Nevertheless, Ministry of Steel has endorsed the  requests  of  RINL  to  various  State  Governments  viz.  Odisha,  Chhatisgarh  and Andhra Pradesh by recommending reservation of iron ore deposit under Section 17A (2A)  of  Mines  and  Minerals  (Development  and  Regulations)  Act,  2015  to  Ministry  of Mines, Government of India. Ministry of Steel has also requested Government of Odisha for reservation of an iron ore block in favour of RINL.  RINL has also been participating in allocation of Iron Ore Mines through e-auction route.

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Details of Net Profit of SAIL & RINL

|         |   RINL (in Rs. Cr.) | SAIL (in Rs. Cr.)   |
|---------|---------------------|---------------------|
|         |              751.46 | 2011-12 3543        |
| 2012-13 |              352.83 | 2170                |
| 2013-14 |              366.45 | 2616                |
| 2014-15 |               62.38 | 2093                |
|         |            -1420.64 | 2015-16 -4021       |
|         |            -1263.16 | 2016-17 -2883       |
|         |            -1369.01 | 2017-18 -482        |
|         |               96.71 | 2018-19 2179        |
| 2019-20 |            -3910.17 | 2022                |
| 2020-21 |             -789.1  | 3850                |

## Annexure