Govt may merge loss-making steel firms
The Centre is considering a Steel Ministry’s proposal to first merge the loss-making NeelachalIspat Nigam (NINL) with Rashtriya Ispat Nigam (RINL) and later merge it with Steel Authority of India (SAIL) to create a single state-owned steel manufacturer to bring in efficiency.
“There is scope for a merger of these companies. A detailed analysis needs to be done,” an official told media.
NINL incurred a net loss of Rs 378 crore, while RINL incurred a net loss of Rs 1,369 crore in FY18 due to a slowdown in the industry. Meanwhile, SAIL, the largest state-run steel maker, slimmed its losses by around 83 percent to Rs 482 crore in FY18. It reported a sales turnover of Rs 58,297 crore last fiscal, up 19 percent from FY17.
The ministry has also suggested a consolidation of profitable iron ore mining companies such as National Mineral Development Corporation (NMDC) and KIOCL, formerly know as Kudremukh Iron Ore Company.