RINL disinvestment: 36,000 VSP employees go on strike
PTI - HYDERABAD
Published: 24th July 2012 04:03 PM
Last Updated: 16th October 2012 11:54 AM
As many as 36,000 employees including 16,000 permanent
employees of Visakhapatnam Steel Plant (VSP) today went on strike opposing the
UPA government's disinvestment proposals of Rashtriya Ispat Nigam Limited
(RINL), the corporate entity of VSP.
According to AITUC leader D Adinarayana, all the employees'
associations including CITU and INTUC are opposing the government's move to
disinvest 10 per cent stake in the RINL.
"Today it may be just 10 per cent disinvestment. Later
the government may go for higher stake dilution and slowly may sell majority
share. Employees' interests will be affected if the disinvestment is allowed to
continue," Adinarayana told PTI.
Department of Disinvestment recently decided to put on hold
the Rs 2,500-crore Initial Public Offer (IPO) based on the bankers' advice with
respect to gloomy market conditions.
The IPO was supposed hit the market by July-end. The first
phase of roadshows for the IPO was conducted last month in London, Hong Kong
The central government wanted to offload 10 percent of its
equity in RINL to achieve its total target of Rs 30,000 crore during current
fiscal from disinvestment in profit-making public sector units.
The union leader said they are sending letters to Prime
Minister and other ministers to reconsider their decision on disinvestment
When contacted, a senior official of the VSP said the
management has taken care to see that all critical functions will go on
smoothly. "There will be some impact on the production. We have made some
stop gap arrangements.
Production loss can be quantified at later stage," the
VSP chairman and managing director A P Chowdhary earlier
appealed to the unions to desist from the strike as it would have a cumulative
effect on production. However, the employees' associations rejected the appeal.