Disinvestments of Rashtriya Ispat Nigam Limited shares: Trade unions protest

Several trade unions of the Visakhapatnam Steel Plant (VSP) went on a day’s strike to urge for their demand to withdraw the 10 per cent disinvestment of the equity in Rashtriya Ispat Nigam Limited (RINL) – the holding company of VSP.

Why the Strike?

• To protest against disinvestment launched on July 13, 2012.
• In order to attain its total target of Rs 30,000 crore during current fiscal from disinvestment in profit-making public sector units, the Centre desired to unload 10% of its equity in RINL.
• For this, the Government determined for Rs 2,500-crore IPO.
• The trade union leaders fear 10% disinvestment would subsequently lead to privatization of the Plant as the Union government has decided to go for Initial Public Offer (IPO).

Month: Current Affairs - July, 2012