10 bidders vying to value Vizag Steel assets

Visakhapatnam: The privatization of Vizag Steel Plant (VSP) seems inevitable as the Center rapidly prepares its divestment. In the latest development, 10 bidders have submitted their bids for the RFP (Request for Proposal) as Asset Valuator for the Strategic Divestiture of Rashtriya Ispat Nigam Limited (RINL).

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 must have completed at least one appraisal mission of a similar nature with a minimum asset value of Rs 5,000 crore.

The Department of Investment and Public Assets Management (DIPAM) launched a call for tenders on March 11 to appoint companies to evaluate the RINL-VSP. This was followed by the Cabinet Committee on Economic Affairs (CCEA) giving approval in principle for the divestment of 100% of the government’s stake in the RINL on 27 January.

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

Speaking to Deccan Chronicle, D. Adinarayana, chairman of RINL-VSP’s anti-privatization agitation committee, said it was painful that the Center opted for divestment from the steel plant without heeding their pleas and of the importance of the historic factory.

“We will not allow the entry of valuables into our factory. We will mobilize a mass movement,” he said.

He further stated that the value of the business would be more than Rs three lakh crore. The VSP owns nearly 24,000 acres of land, which is valued at around Rs 1.5 lakh crore. Currently, 6,500 officers, 12,000 regular workers and 20,000 contract workers work for the company, which produces five million tons of steel per year.

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