Visakhapatnam: GVL Narasimha Rao seeks financial aid for revival of steel Plant
BJP leader GVL Narasimha Rao submitting a letter to Union Finance Secretary TV Somanathan during his recent meeting in New Delhi
Visakhapatnam : BJP leader GVL Narasimha Rao sought Rs.3,110 crore of financial assistance to revive Visakhapatnam Steel Plant meeting Union Finance Secretary TV Somanathan in New Delhi.
Recently, an inter-ministerial team of senior officials undertook a detailed review of the RINL’s functioning and is discussing various possibilities for suitable recommendations to the government. In a letter submitted to the Finance Secretary, GVL Narasimha Rao stated, “Visakhapatnam Steel Plant is going through a very severe financial crisis over the past few months mostly due to a combination of external factors which is beyond the control of the company. The security of over 30,000 employees of RINL and about 1 lakh families are dependent on the survival of the company.” Stating that he had raised these concerns repeatedly both in Parliament and outside, former Member of Parliament GVL Narasimha Rao urged Union Finance Secretary to support infusion of Rs 3,110 crore by the Union Government towards the issuance of preferential shares which will help the company to tide over the present financial crisis.
“At present, the authorised share capital of RINL is Rs 8,000 crore, 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 the company to regain a positive net worth”, GVL reasoned.
In addition to the infusion of financial assistance, GVL urged the Finance Secretary to undertake a series of other measures to bring the lost sheen of the company.
During the meeting, GVL said, the discussion with the Union Finance Secretary also included the proposal of transfer of ownership of land to RINL to improve the new worth of the company and allow it to mobilise additional Rs 4,000 crore through other sources.
A comprehensive set of such proposals will help in nursing the company limp back financially, GVL mentioned. Responding positively to GVL, the Finance Secretary promised to look into the revival proposals.