On January 27, the Cabinet Committee of Economic Affairs (CCEA) gave ‘in-principle’ approval for 100 per cent disinvestment of the government’s stake in Rashtriya Ispat Nigam Ltd (RINL), also called Visakhapatnam Steel Plant or Vizag Steel. This will be along with RINL‘s stake in its subsidiaries/ joint ventures through strategic disinvestment by way of privatisation.
Sitharaman said strategic disinvestment of the government’s equity will lead to infusion of capital for optimum utilisation, expansion of capacity, infusion of technology and better management practices. This will result in higher production and productivity and expansion of direct and indirect employment opportunities.
“While deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the Share Purchase Agreement (SPA),” she said in a written reply to Lok Sabha.
The minister was replying to a question on whether the government has considered the ramifications of strategic sale of Vizag Steel on the stakeholders involved, including impact on jobs.
Sitharaman said the state government does not have any equity in RINL. “However, the state government is consulted in specific matters as and when needed and their support is also solicited in the matters that require their intervention,” she added.