New Delhi: The Steel Executives Federation of India (SEFI) has proposed that the Centre create a single large public sector steel company by bringing together SAIL, RINL, NMDC Steel and MECON under the Ministry of Steel.

SEFI made the proposal in a letter to Prime Minister Narendra Modi and later adopted a resolution in support of the plan. The federation represents around 20,000 officers working across steel-sector public sector undertakings.

Under the proposal, SAIL would acquire RINL and NMDC Steel’s Nagarnar plant, with SEFI suggesting that funds already earmarked for SAIL’s capacity expansion could be used for the acquisitions. MECON, which provides engineering and consultancy services to the steel and other sectors, would also be brought into the proposed integrated entity.

SEFI has sought strategic-sector status for the steel industry, along with greater integration of steel production, raw materials and engineering capabilities. It has also called for measures to strengthen raw-material security and technological capabilities.

The proposal comes as the government is pursuing the strategic disinvestment of RINL, while the process for strategic disinvestment of NMDC Steel has also been initiated. SEFI has additionally sought ₹2,500 crore for restoration of coke oven batteries at Visakhapatnam Steel Plant.

The proposed consolidation is aimed at creating a larger, integrated public-sector steel entity with greater production capacity, resource integration and engineering capabilities.

BI Bureau