TDP opposes divestment in RINL

"We are totally opposed to the stake sale in Visakhapatnam Steel Plant. The TDP will launch an agitation if the Centre does not withdraw the move immediately," TDP Politburo member and Leader of Opposition in Legislative Council, Dadi Veerabhadra Rao told a press conference here.

Rao wondered how the Centre could dilute its stake in the PSU when the VSP was making profits.

"Moreover, works are already underway for the expansion of VSP at a cost of Rs 1,300 crore. How could the Government then sell its stake," he questioned and demanded that the move be withdrawn at once.

RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.

The Government proposes to dilute 10 per cent stake in RINL through an initial public offer (IPO), which is scheduled to hit the capital market on October 16.