Post turnaround, RIL eyes Navratna status

New Delhi, August 24: The steel ministry has recommended granting Navratna status to one of its biggest steel unit, Rashtriya Ispat Nigam Limited (RINL). This would equip the PSU with powers and financial autonomy to meet the growing challenges by executing its capacity-expansion and modernisation plans worth Rs 12,000 crore.

The Department of Public Enterprises (DPE) is examining the proposal and is expected to take a decision soon. “The company has been registering increase in year-on-year profit on tax. Its PAT was Rs 1942.74 crore in 2007-08. There is clearly a case for granting Navratna status to RINL,” a senior Steel Ministry official said.

The PSU is executing its capacity-expansion programme to expand capacity to 6.3 million tonne per annum at a cost of about Rs 12,000 crores ( 2008 prices). RINL has over 22,000 acres whose current market value varies between Rs 1 crore to Rs 6 crore per acre depending on location.

RINL was the first steel company off the block to commence expansion in the Indian steel sector in 2004-05.

It was invited by Credit Suisse (Canada) to submit an offer for acquiring Iron ore assets (time frame of two months) RINL made its bid conditional, subject to government’s approval. “With Navaratna powers, it could have made a more aggressive effort,” the official said and pointed out that with its plans for acquiring a lime stone mine abroad, RINL had to enter in to MOU with SAIL for a JV as it has no delegation to invest abroad.

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