Andhra averse to SAIL-RINL merger

The Andhra Pradesh government has opposed the proposed merger of public sector steelmakers Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL) saying that it would hurt the sentiments of the people of the state.

PTI reported Andhra Pradesh Chief minister YSR Reddy as saying,"SAIL never offered to help when RINL was having tough time... Now the financial condition of our plant has improved and that is why they want to merge it."

The Centre had favoured SAIL's proposal to merge it with RINL saying it would solve the problem of raw material for the Andhra Pradesh-based plant, while SAIL would get access to the port owned by RINL.

Recently, SAIL chairman S K Roongta made a renewed pitch for the merger. "As far as SAIL is concerned, we are for the merger as there are lot of synergies between the two companies." Roongta had also said the government, which is the owner of both the companies, would have to take a call on it.