The Steel Executives Federation of India (SEFI) has urged the government to consider a strategic merger of steel public sector undertakings (PSUs) instead of privatisation. SEFI has already submitted a proposal to the Union Steel and Finance Ministries in this regard. According to N K Banchhor, Chairman of SEFI, SAIL is required to fully materialise its expansion projects by 2030 and the Government has to allocate a significant amount annually for the same. The strategic merger of RINL, FSNL, and Nagarnar Steel Plant into SAIL could help achieve this expansion more efficiently and quickly. This would also lead to the formation of a mega PSU under the Union Steel Ministry, which would enhance the profitability of the units. In the past, a decision was taken to merge FSNL into either SAIL or RINL, but it was later reversed.

However, FSNL’s strategic merger could prove to be a major step towards profitability and development in the course.

Banchhor further emphasized that the PSUs have played a key role in nation-building and all-round development of the region, creating millions of employment opportunities and improving social and cultural aspects like education and health facilities. SEFI passed a resolution in this regard at a council meeting on April 4, 2021, and the issue was also discussed in parliament on December 15, 2022. The merger would allow the PSUs to supplement each other’s requirements and have their own port for export. Instead of privatization, the government should consider restructuring and strategic merger of steel PSUs for planned functioning. It’s worth mentioning that a similar strategic merger was implemented in the banking sector in the past, which proved to be a worthwhile decision on the part of the government.