State-run Rashtriya Ispat Nigam (RINL) is likely to get the coveted Navaratna tag that will give the steel-maker more financial and commercial autonomy as being enjoyed by other 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 told PTI.
"Last week, the proposal to accord navaratna status to RINL was sent to the Committee of Secretaries (CoS) being 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 Navaratna firm, RINL would require the government's nod 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. If accorded the Navaratna status, RINL will join the club comprising 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 (KDCL), Scott & Saxyby (SSL) Eastern Investments (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.
Bisra Stone Lime Co and Karanpura Development Co are also engaged in mining. SSL is engaged in mineral exploration and EIL an investment firm.
