VIJAYAWADA: Senior BJP leader GVL Narasimha Rao on Friday sought Rs 3,110 crore financial assistance from the Centre to revive Visakhapatnam Steel Plant. He called on Union Finance Secretary TV Somanathan, and submitted a representation seeking the financial assistance.
GVL’s meeting with the Finance Secretary came at a time when the inter-ministerial team of senior officials has undertaken a detailed review of RINL’s functioning, and started exploring various options to make suitable recommendations to the Centre.
GVL said, “Visakhapatnam Steel Plant is going through a very severe financial crisis over the past few months due to reasons mostly external, and beyond the control of RINL. The security of over 30,000 employees of RINL, and 1 lakh families overall is dependent on the survival of RINL. Its survival is also important to protect the value of this precious national asset.”
Stating that he raised these concerns about RINL repeatedly both in Parliament and outside, the former Rajya Sabha MP urged the Finance Secretary to support infusion of Rs 3,110 crore by the Centre towards the issuance of preferential shares, which will help RINL to tide over the present financial crisis.
“At present, the authorised share capital of RINL is Rs 8,000 crore, and the paid-up capital is Rs 4,889.85 crore, and the balance Rs 3,110 crore can be infused in the form of preferential shares to help RINL regain a positive net worth,” the former MP explained.
Recalling similar support extended by the Atal Bihari Vajpayee government to RINL in 2002, GVL informed that RINL had repaid Rs 2,937 crore to the Centre between 2011 and 2016. In addition to the infusion of financial assistance, GVL urged the Finance Secretary to take up a series of other measures for the revival of RINL.
After the meeting, GVL said he also discussed the idea of transfer of ownership of land to RINL to improve its net worth, and to allow RINL to mobilise an additional Rs 4,000 crore through various other sources. A comprehensive set of such proposals will help bring RINL back to financial health.
The Finance Secretary promised to look into all the proposals sympathetically, the senior BJP leader said.