In face of opposition from Chhatisgarh govt, Centre may drop plan to privatise NMDC’s Nagarnar plant

In face of opposition from Chhatisgarh govt, Centre may drop plan to privatise NMDC’s Nagarnar plant

The Centre may drop the plan to privatise mining major NMDC’s under-construction Nagarnar steel plant in Chhattisgarh in the face of stiff opposition from the state government and trade unions; instead, it is likely to sell only minority stake in the three million-tonne plant. Steel secretary Aruna Sharma told FE: “There will be no outright sale but steps will be taken for better management and running of the steel plant. However, it is too early (to take a call) and the plant is yet to be completed.”

However, analysts said private steel firms are unlikely to be interested in minority stake in the unit and the government may have to eventually rope in a PSU, if it wants the plant to be run as a joint venture. Apart from the state government, which sees left-wing extremism regaining ferocity if the Centre goes ahead with the plan for strategic disinvestment of the steel plant, the All India NMDC Workers’ Federation — an umbrella body of trade unions affiliated to AITUC and INTUC — had threatened to bring the state’s Bastar region to a standstill if the unit is privatised. The local people, the unions claim, are also not in favour of privatisation fearing job losses. Read More…

 

Leave a Reply

Your email address will not be published.