RINL’s merger with NMDC rejected
KOLKATA (miningweekly.com) – Indian steel producer Rashtriya Ispat Nigam Limited’s (RINL’s) plan of securing raw material security through corporate activity has suffered a setback with the Indian government ruling out a merger with country’s largest iron-ore miner, NMDC Limited.
Steel Minister Chaudhary Birendra Singh this week said that the government had not found any merit in the proposal submitted for the RINL-NMDC merger and that the government would not follow it up further.
RINL operates a six-million ton a year steel mill in southern Indian port town of Vishakhapatnam, but does not own any captive iron-ore mines.
The merger was aimed to ensure backward and forward integration for the government-owned companies and to improve the cost competiveness of RINL with secured captive source of raw material.
Both the companies are under the administrative charge of the Ministry of Steel.
RINL is also the only government steel company without any captive iron-ore mines and has a merchant agreement to source the raw material for its steel mill at Vishakhapatnam with NMDC Limited.
In fact, following the announcement that the merger had been rejected, all major trade unions irrespective of their political affiliations have come out in opposition to the government decision.
Spokesperson of the left-aligned Centre for Indian Trade Unions and Indian National Trade Union Congress aligned to the Congress party, said that merger proposition had been rejected because the federal government wanted to sell its equity holding in RINL to private investor.
The government had already announced that it favoured inviting strategic private investors to pick up equity stake in the steel mill that NMDC is building to keep the company’s focus on mining operations.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
