Not advisable to go for RINL public offer at this stage: Steel Min

The steel ministry Thursday has conveyed to the Department of Investment and Public Asset Management (DIPAM) it may not be appropriate to go ahead with the initial public offering of Rashtriya Ispat Nigam Ltd (RINL) at this stage.

The ministry of steel "has conveyed that given the performance of RINL in the preceding three financial years, it may not be advisable to go for IPO at this stage," according to a report.

The report of Committee on Public Enterprises on review of loss-making PSUs was tabled in the Lok Sabha Thursday.

DIPAM had sought comments from the steel ministry on the feasibility of holding the disinvestment of Rashtriya Ispat Nigam Limited (RINL) through IPO in near future.

The Cabinet Committee on Economic Affairs (CCEA) had given 'in-principle' approval in the year 2012 on the proposal for disinvestment of 10 per cent paid up equity of RINL out of the government shareholding of 100 per cent through initial public offering.

The report further said that the three loss-making units of SAIL -- Visvesvaraya Iron and Steel Plant(VISP), Salem Steel Plant (SSP) and Alloy Steel Plant (ASP), Durgapur -- have been proposed for strategic disinvestment.

"Preliminary Information Memorandum (PIM)/Expression of Interest (EOI) of ASP has been floated.... The PIM/EOI of VISP duly approved by SAIL board is under process in Ministry of Steel. PIM/ EOI of SSP is at draft stage," it said.

It further said the government think tank Niti Aayog has provisionally identified Mecon for strategic sale.

"However, in view of strategic importance of MECON in the context of growth of steel sector as envisaged under the National Steel Policy, 2017 there is a need to keep the existing status of Mecon," it said.