10 bidders in fray for valuing Vizag Steel assets

VSP privatisation appears imminent

Visakhapatnam: Privatisation of Vizag Steel Plant (VSP) seems to be inevitable as the Centre is moving fast on preparing for disinvestment. In the latest development, 10 bidders submitted their bids for the RFP (request for proposal) as asset valuer for strategic disinvestment of Rashtriya Ispat Nigam Limited (RINL).

The bidders include AAA Valuation Professionals LLP, ADROIT Appraisers and Research Pvt Ltd, Amit Kumar Kankane, Bhavin R Patel, CPA Valuation Advisors Pvt Ltd, GAA Advisory LLP, GTech Valuers Pvt Ltd, RBSA Valuation Advisors LLP, Resolute Valuers and Consultants Pvt Ltd and RK Associates Valuers and Techno Engineering Consultants Pvt Ltd.

As per the conditions, each bidder should have completed at least one valuation assignment of a similar nature with a minimum asset value of Rs 5,000 crore.

Department of investment and public asset management (DIPAM) floated RFP on March 11 for appointing firms for valuing the RINL-VSP. This was followed by Cabinet Committee of Economic Affairs’ (CCEA) giving an in-principle approval for 100 per cent disinvestment of the government stake in the RINL on January 27.

As per the conditions, the valuer will have to carry out the valuation of all assets of RINL, subsidiaries and joint ventures, including plant and machinery under Gajuwaka assembly segment here. Even furniture and civil infrastructure will also be valued.

Speaking to Deccan Chronicle, D. Adinarayana, chairman of the agitation committee against privatisation of RINL-VSP, said that it was painful that the Centre was going for disinvestment of the steel plant without considering their pleas and importance of the historical plant.

“We will not allow the entry of value in our plant. We will mobilise a mass movement,” he said.

He further said that the company’s value would be more than Rs three lakh crore. The VSP has nearly 24000 acres of land, which is valued at around Rs 1.5 lakh crore. At present, 6,500 officers, 12000 regular workers and 20000 contract workers serve the company, which produces five million tons of steel per annum.

Next Story