The Indian government has confirmed the privatization of RINL or Vizag Steel Plant with the Cabinet Committee on Economic Affairs’ decision for 100pc disinvestment. Media reports suggest, should the unit fail to find buyers, it could be considered for closure, as per the Public Sector Enterprise policy approved on Jan 27.
The policy has named steel as a non-strategic sector and would consider all the existing PSE units for privatization as feasible. Last month, the government had invited bids from transaction advisors and legal advisors to manage the strategic sale of the steel plant.
Subsequently, workers from the plant intensified their protests against the move. The chief minister of Andhra Pradesh YS Jaganmohan Reddy has also spoken to the Prime Minister of India, Narendra Modi to reconsider the disinvestment plan.