The strategic disinvestment of government's equity in Rashtriya Ispat Nigam Limited (RINL) would lead to an infusion of capital, expansion of capacity, infusion of technology, and better management practices, Union Steel Minister Ram Chandra Prasad Singh told the Parliament on Wednesday.
Singh said in the Lok Sabha that the RINL has not increased its profits during the last ten years, and its cumulative losses were Rs 7,122.25 crore.
Cabinet Committee on Economic Affairs (CCEA), in its meeting held on January 27, 2021, had accorded 'in-principle' approval for 100 percent disinvestment of government's shareholding in RINL along with RINL's stake in its subsidiaries and joint ventures through strategic disinvestment by way of privatization.
Singh said the project's purpose under the proposed disinvestment would not change, and no decision has been taken yet on the mode of transfer of land.
''This strategic disinvestment of the government of India's equity in RINL would lead to an infusion of capital for optimum utilization, expansion of capacity, infusion of appropriate technology and better management practices with resultant higher production and productivity and expansion of direct and indirect employment opportunities,'' he said during the Question Hour.
These measures will help realize the true potential of RINL, leading to a much greater contribution to the economic growth of the nation, thereby serving a larger public purpose, he said.
(With inputs from PTI)