‘A strategic move for India’s steel industry’

Independent Director of Steel Authority of India Limited (SAIL) and a senior BJP leader, Sagi Kasi Viswanatha Raju, has proposed a strategic merger of SAIL, Rashtriya Ispat Nigam Limited (RINL), and NMDC Steel (NSL). This ambitious proposal aims to create a mega Central Public Sector Enterprise (CPSE), potentially placing India among the top 10 steel producers globally.
In a detailed proposal submitted to the Prime Minister’s Office and Niti Aayog, Raju urged for immediate action ahead of a key high-level meeting scheduled for October 8, 2024. The meeting is expected to address the critical issues facing RINL, including financial difficulties and a shortage of raw materials.
Speaking to The Pioneer, Raju highlighted the importance of the merger. “Union Minister for Steel, HD Kumara Swamy, has expressed support for SAIL’s takeover of both RINL and NSL, which would provide a significant boost to their operations,” Raju remarked.
Although current government policies restrict one public sector unit from acquiring another, Raju believes that relaxing these rules could open the door for the proposed merger. “The merger would not only increase SAIL’s production capacity from 20 million tonnes per annum to 50 million tonnes but also help in utilising its raw material access and marketing networks effectively,” he explained.
Raju also noted that the Union Government had already approved SAIL’s expansion plans, making the merger a more efficient and timely solution than building new plants. “If approved, this move would not only create substantial employment opportunities but also contribute significantly to the government’s GST revenue,” he added.
The proposed merger has gained support from BJP State President D Purandeswari and other party leaders, who have urged the Centre to pursue this strategic initiative to ensure RINL’s future as a public sector enterprise.