Visakhapatnam: Minister of State for Steel Vishnu Deo Sai said that no team paid a visit to Rashtriya Ispat Nigam Limited in recent times to look into the modalities of listing the RINL.
However, the Cabinet Committee on Economic Affairs (CCEA) has given in-principle approval in 2012 on the proposal for disinvestment of 10 per cent paid up equity of RINL out of Government of India shareholding of 100 per cent through Initial Public Offering (IPO) as per the disinvestment policy of the Government of India.
Responding to MP V Vijayasai Reddy’s questions on disinvestment of RINL shares and reasons of the RINL losses, Vishnu Deo explained about the major reasons for the company incurring losses.
The reasons for losses inter alia have been adverse market conditions, lower net sales realisation of steel products, increase in imported and indigenous coal prices and downturn in global steel industry, the Steel Minister said.
Steel is a deregulated sector and the role of government is that of a facilitator only. However, the government has taken remedial measures to safeguard the indigenous steel industry which amongst others include trade measures.