Parl Panel reiterates proposal for SAIL-RINL merger
New Delhi: A Parliamentary Panel has again asked government to consider its proposal of merging Rashtriya Ispat Nigam (RINL) and Steel Authority of India (SAIL).
"While reiterating their recommendation on revisiting the proposal for merger of RINL with SAIL, the Committee desire the government to clearly specify its stand on the issue and apprise it on the same," Committee on Public Undertaking has said in a recent report.
The merger would help the two state-run steel makers to acquire global size of operation, it had earlier observed. The panel had also said the merger would also enable them to synergise operation and bring down the cost of production.
The report, however, said: "The Committee regret to note that the Action Taken Reply of the government is completely silent on this aspect".
SAIL is the largest steel maker in the country with the current production capacity at 14.6 million tonnes per annum. It has embarked on a capacity expansion to take it to 26.2 mtpa.
The Vizag-based RINL currently has a capacity of 2.9 mtpa. It is expected to go up to 6.3 mtpa in the next fiscal.