Amaravati, Sep 17 (PTI) Amid reports that Rashtriya Ispat Nigam Ltd (RINL) is struggling to tide over a financial crisis, Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday said he would try his best to ensure that the state-owned steel plant is not privatised, as opposed to the NDA government’s plans to disinvest it.
Addressing a press conference here, he also cautioned the employees and trade unions of the Visakhapatnam Steel Plant to implement proper management policies and bring it out of the woods.
Noting that it was he who got the RINL’s debt restructured and paved way for smooth functioning during former Prime Minister Atal Bihari Vajpayee’s regime, Naidu blamed the previous YSR Congress government for not taking the plant’s health seriously.
“The union and employees ( of RINL) have a responsibility to ensure smooth flow of operations and turn the loss-making project into a profitable one. While steel plants in the private sector are making profits, the management should think why a government undertaking has to face such a situation,” he said.
“Though it is a sentiment for the state (about the survival of RINL) it cannot be a reason for a bailout . We will try to streamline it totally and ensure that it is not privatised.” Naidu said he recently held a meeting with Union Ministers Nirmala Sitharaman and HD Kumaraswamy on the issue.
“The Centre may release some funds for the plant soon to ensure smooth operations,” the CM said.
RINL has accumulated a debt of about Rs 18,000 crore and currently the plant is operating only with one blast furnace out of total three, a steel plant official said.
He however said once the raw material supply situation improves, one more furnace may be operationalised by this month end.
Meanwhile, the state government has announced some financial assistance to the people who suffered due to the recent floods.
Naidu said the government identified that over 2.72 lakh families have suffered due to the floods.
He said the state administration struggled to bring the situation back to normalcy.
On the three boats that struck the Prakasam Barrage gates, Naidu, suspecting the opposition YSR Congress’s hand behind the act, said efforts are on to retrieve the vessels.
Weighing about 50 tonnes each, the boats hit the barrage on September 1 and damaged a counterweight. PTI GDK ROH
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