Key Highlights
- SEFI has proposed merging RINL and NMDC with SAIL.
- The proposal has been sent to the Prime Minister’s Office and Union Steel Ministry.
- SEFI says the merger could help address RINL’s debt and financial difficulties.
- The proposal aims to create a larger public sector steel company with greater global presence.
- SEFI has warned of a phased protest from 1st January 2027 if the Government does not take a positive decision.
- SEFI says SAIL’s production capacity could rise to around 30 million tonnes after the proposed merger.
Ranchi: The proposal to merge Rashtriya Ispat Nigam Ltd (RINL) and National Mineral Development Corporation (NMDC) with Steel Authority of India Ltd (SAIL) has gained momentum, with the Steel Executives Federation of India (SEFI) sending the proposal to the Prime Minister’s Office and the Union Steel Ministry. The proposal seeks to bring the three Government owned companies under one large public sector steel entity.
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In the proposal, the SEFI has raised concerns over the financial position and future challenges facing RINL and NMDC. It has argued that bringing the two companies under SAIL, a Maharatna public sector enterprise, could help address RINL’s debt burden and financial stress. According to SEFI, a combined entity would also have greater scale and could strengthen the position of Indian public sector steel companies in the global market.
Proposal Aims to Create Larger Steel PSU
The proposed merger would bring together steel production, mineral resources and other operations under a single public sector structure. SEFI believes this could create a mega steel PSU while providing greater financial stability to RINL and securing the future of its employees, officers and their families. SEFI chairman Narendra Kumar Banchhor said the merger proposal had already been submitted to the Government and expressed hope that a decision would be taken soon. He said SAIL’s production capacity could rise to around 30 million tonnes if the merger goes ahead.
SEFI Warns of Protest From January 2027
SEFI is now awaiting the Government’s response to the proposal. Former SEFI general secretary Vimal Kumar Vishi said serving and retired officers of SAIL and RINL would launch a phased agitation if there was no positive move from the government. The first phase is scheduled from 1st January 2027, with officers wearing black badges, followed by peaceful demonstrations at different units and, eventually, an indefinite protest at Jantar Mantar in New Delhi. The proposed merger, however, remains subject to examination and a decision by the Government.
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