SAIL director urges merger of Steel Authority, RINL, and NMDC steel to create 10th largest global steel producer

Sagi Kasi Viswanatha Raju, an independent director at Steel Authority of India Limited (SAIL) and BJP-Andhra Pradesh State General Secretary, has called on the Union Government to consider merging SAIL with Rashtriya Ispat Nigam Limited (RINL) and NMDC Steel Limited (NSL). This merger could establish a mega Central Public Sector Enterprise, potentially making it the 10th largest steel producer in the world. Raju has submitted a detailed proposal to the Prime Minister’s office and Niti Aayog ahead of a high-level meeting on October 8, 2024, focused on addressing RINL’s ongoing financial struggles and lack of dedicated raw material sources.

Raju noted that while current government policy restricts one public sector unit from acquiring another, he believes a policy relaxation is crucial for SAIL to successfully manage RINL and NSL. He emphasized that the proposed amalgamation could significantly increase SAIL’s production capacity from 20 million tonnes to 50 million tonnes per annum. Additionally, RINL and NSL’s output would benefit from SAIL’s established infrastructure, including access to raw materials and marketing facilities, thereby improving operational efficiencies.

The potential merger aligns with the Union Government's previous approval for SAIL's expansion and addresses the pressing need for revitalizing struggling enterprises like RINL. Raju argues that this strategic move would not only ensure job creation but also enhance GST revenues for the government. With support from BJP leaders, including State President D. Purandeswari, Raju remains optimistic that the Centre will consider the proposal favorably, paving the way for a stronger, consolidated steel industry in India.