State-run Rashtriya Ispat Nigam Ltd (RINL) is likely to get the coveted Navratna tag, which will give the steel maker more financial and commercial autonomy as enjoyed by PSUs like ONGC, NTPC and SAIL, a senior government official said.
The Department of Public Enterprises (DPE) has sent a proposal in this regard to the Committee of Secretaries (CoS), Steel Secretary P K Rastogi said.
“Last week, the proposal to accord navratna status to RINL was sent to the CoS, headed by the cabinet secretary,” Rastogi said.
RINL, a mini ratna firm, at present has to seek the government’s approval on investment exceeding Rs 500 crore.
After becoming a Navratna firm, RINL would require the government’s approval only for investments in joint ventures and overseas projects exceeding Rs 1,000 crore.
The request of steel ministry for Navratna status to RINL has been pending with the DPE for a long time now.
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If accorded the Navratna status, RINL will join the club of 18 profit-making PSUs such as SAIL, NMDC, ONGC, NTPC, BHEL, MTNL.
RINL is working to double its production capacity by the third quarter of 2010 to 6.2 mtpa. It is also part of ICVL, a Special Purpose Vehicle comprising firms like NTPC, Coal India, SAIL, to acquire mining properties abroad. Also, the steel ministry has sent a proposal to the Cabinet on RINL acquiring majority stakes in three ailing mining companies and two others under its control.
The five ailing state-run companies — Orissa Mineral Development Corporation (OMDC), Bisra Stone Lime Co (BSLC), Karanpura Development Co Ltd (KDCL), Scott & Saxyby (SSL) Eastern Investments Ltd (EIL) — also known as the Bird Group of Companies, would be made RINL subsidiaries.
The move is to give the much-needed raw material security to the steel maker. OMDC has an estimated 200 million tonnes (MT) of iron ore and 45 MT of manganese ore.
BSLC and KDCL are also engaged in mining. SSL is engaged in mineral exploration and EIL is an investment firm.