Even as the employees of the Rashtriya Ispat Nigam Limited (RINL), better known as Visakhapatnam Steel Plant, have stepped up agitation in protest against the proposed privatisation of the steel plant, domestic steel giant Tata Steel evinced interest in taking over the Vizag steel plant.
This was announced by Tata Steel Chief Executive Officer (CEO) and Managing Director T V Narendran on Tuesday. He said the Tata Steel was interested in acquiring the RINL and it would file the bid for expression of interest in this regard.
"Yes! Also, because for inorganic growth for long product opportunities... There is a great opportunity because it is east as well as it is south, it is a coastal plant so there are many advantages...," he told a news agency.
The RINL has approximately 22,000 acre of land and enjoys access to Gangavaram Port, where raw materials such as coking coal etc arrives.
Since the RINL is located on the eastern coast of India, the acquisition will give Tata Steel more access to the South East Asian markets -- where the company already has presence -- besides catering to the domestic needs of special steel through rail and road.
The RINL, under the Ministry of Steel, owns and operates a 7.3 million tonnes plant in Visakhapatnam, Andhra Pradesh. It holds the distinction of being India's first shore-based integrated steel plant.
The Cabinet Committee on Economic Affairs (CCEA) on January 27, gave its 'in-principle' approval for 100 per cent disinvestment of government stake in RINL, also called Visakhapatnam Steel Plant or Vizag Steel, along with RINL's stake in its subsidiaries/joint ventures through strategic disinvestment by way of privatisation.
On Tuesday, thousands of workers of Vizag Steel Plant lay siege to the administrative building of the RINL demanding that the Centre revoke the tender notice for privatisation of the steel plant.
They threatened to prevent any private company entering the premises to take part in the bidding, the last date for which was originally Tuesday. The Centre, however, deferred the bidding process by some more time.