RINL Disinvestment? Steel Secretary Bats For Disinvestment Of PSU

Sandeep Poundrik, Secretary, Ministry of Steel, on Wednesday, batted for privatization and disinvestment of PSUs in steel. speaking at the curtain raiser of FICCI’s Annual Convention & 97th Annual General Meeting, 2024, Poundrik said that 'there is a case for some of the plants like Rashtriya Ispat Nigam Limited RINL, Which is in deep financial crisis'.

Adding that there are practical constraints on disinvestment, Poundrik said - 'Most important priority is $120Billion investment', which is needed in priority. "The second is the transition to green steel. Other countries are putting up a barrier for green steel,” he said.

“Another requirement is to upgrade technologies,” Poundrik said.

The Game Of Supply-Demand

Steel consumption in India is on an upward trajectory, with a “growth of 13 per cent in steel consumption.” A growing market means more demand, said Poundrik, adding - “(There is) no problem on the demand side. We will need 300 mn tonne of steel by 2030,  which will demand an approximate investment of $120 Billion.”

How To Protect The Steel Industry?

Poundrik also batted for an increased customs duty to protect the industry to protect domestic players. However, he believes that this measure won't cover the majority of the imports because it is coming via the FTA (Free Trade Agreement) route.

According to him, the second option is safeguard duty, and the third is anti-dumping measures. Addressing anti-dumping measures, Poundrik said, there are “Concerns over profitability. Due to dumping at the international level, costs have gone down. There is a genuine problem.”

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