New Delhi: The Steel Executives Federation of India (SEFI) has urged Prime Minister Narendra Modi and the Central Government to consider merging Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL), NMDC Steel Limited’s Nagarnar plant and MECON Limited into a single mega public sector steel company under the Ministry of Steel.
The demand was made through a letter dated August 31, 2026, signed by SEFI Chairman Narendra Kumar Banchhor, and was subsequently reaffirmed through a resolution passed at the federation’s council meeting held in New Delhi on September 1, 2026.
SEFI represents around 20,000 officers across SAIL, RINL, NMDC, MECON and the Nagarnar Integrated Steel Plant (NISP).
SEFI Seeks Mega Steel PSU Through Merger
According to SEFI, the proposed merger would bring together the strengths and capabilities of major steel-sector public sector enterprises under one entity.
The federation has highlighted what it considers a contrasting approach in the current steel-sector strategy: while SAIL has been asked to significantly expand its capacity, RINL and the Nagarnar plant are facing disinvestment plans.
SEFI’s Key Demands
- Merge SAIL, RINL, NMDC Steel’s Nagarnar plant and MECON.
- Bring the proposed mega entity under the Ministry of Steel.
- Allow SAIL to acquire RINL and Nagarnar using funds already earmarked for its expansion.
- Declare steel a strategic sector.
- Release ₹2,500 crore for restoration of coke oven batteries at Visakhapatnam Steel Plant.
- Strengthen raw material security and technology capabilities in the steel sector.
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SAIL Expansion and RINL-Nagarnar Disinvestment
SEFI’s central argument is based on the different directions being taken for major steel PSUs.
SAIL has been directed to increase its steel-making capacity to 35 million tonnes (MT) by 2030, for which the company is expected to invest more than ₹1 lakh crore, according to the federation.
At the same time, RINL’s Visakhapatnam Steel Plant, with a capacity of 7.3 MT, and the Nagarnar steel plant, with a capacity of 3 MT, have been listed for disinvestment.
SEFI has termed the situation contradictory and proposed that SAIL acquire the two units as part of its planned expansion.
The federation believes this approach could help SAIL achieve its capacity target without waiting for the construction of new facilities.
SEFI Highlights Potential Benefits of Mega Merger
SEFI has argued that combining the companies could create operational synergies and address some of the challenges faced by individual steel units.
According to the federation, the merger could:
- Strengthen raw material security
- Help bridge existing skill gaps
- Facilitate technology transfer
- Improve working conditions
- Protect direct and indirect employment
- Reduce duplication of resources
- Accelerate capacity expansion
- Create opportunities for regional economic and infrastructure development
SEFI believes combining the strengths of different steel units could turn their individual weaknesses into opportunities and support the broader interests of the Indian steel industry.
Nagarnar Plant Has Modern Infrastructure, SEFI Says
SEFI has highlighted the Nagarnar Integrated Steel Plant as one of the key assets that could benefit from integration with SAIL.
The plant was developed at a cost of approximately ₹24,000 crore and incorporates modern technology. It also has access to iron ore resources.
However, SEFI has pointed to an alleged shortage of manpower at the facility, stating that around 200 officers and 500 employees are currently available to operate the plant.
The federation believes integration with a larger steel PSU could help address operational and manpower-related challenges.
RINL Faces Raw Material Challenges
SEFI has also highlighted the strengths and challenges of RINL.
The federation said RINL has a workforce comprising skilled technical specialists but faces challenges related to iron ore availability and high raw material prices.
SEFI believes that integration with SAIL could help address the raw material issue while enabling better utilisation of technical expertise and infrastructure.
The proposed merger, according to the federation, could therefore provide greater raw material security and improve the overall competitiveness of the combined entity.
Steel Should Be Declared a Strategic Sector: SEFI
Alongside the merger proposal, SEFI has renewed its demand for steel to be declared a strategic sector.
The federation argued that steel plays a critical role in the country’s economic growth and contributes significantly to GDP.
SEFI questioned why steel is categorised as non-strategic when several sectors that depend heavily on steel are classified as strategic.
The federation pointed to sectors such as:
- Atomic energy
- Space
- Defence
- Transportation
- Telecom
- Power
- Oil and gas
- Coal and minerals
- Insurance and banking
SEFI said steel should also receive strategic-sector status given its importance to these industries and to national economic development.
The demand was originally raised through a resolution in April 2021, and the federation has since made several representations to the government seeking consideration of the proposal.
SEFI Seeks ₹2,500 Crore for Visakhapatnam Steel Plant
The federation has also urged the Central Government to immediately release ₹2,500 crore for the restoration of coke oven batteries at Visakhapatnam Steel Plant (VSP).
The Steel Executives Association (SEA), Visakhapatnam Steel Plant, has argued that the plant’s financial difficulties have been linked to adverse policies and operational challenges.
SEFI believes that restoring the coke oven batteries would help improve the plant’s operational efficiency and financial performance.
SAIL-RINL Merger Could Strengthen Visakhapatnam Steel Plant
The SEA has highlighted several potential advantages of a SAIL-RINL merger.
According to the association, integration could help:
- Reduce production costs at Visakhapatnam by around ₹8,000–₹10,000 per tonne
- Help the plant reach its 7.3 MT capacity within a year
- Create a pathway for future expansion to 20 MT
- Provide access to SAIL’s captive iron ore mines
- Give SAIL access to VSP’s land bank for future expansion
- Strengthen SAIL’s presence in southern and western markets
- Improve export opportunities through VSP’s coastal location
The association believes these advantages could strengthen the combined entity and support India’s long-term steel production ambitions.
Merger Could Support India’s 300 MT Steel Target
SEFI has linked its proposed mega-merger with the objectives of the National Steel Policy and India’s target of achieving 300 MT of steel capacity by 2030-31.
The federation believes that bringing major steel-sector PSUs under a single entity could enable better utilisation of resources, improve raw material security and accelerate capacity expansion.
SEFI has therefore called for the government to examine the merger proposal as a way to strengthen the public sector’s contribution to India’s expanding steel industry.
About SAIL, RINL, NMDC Steel and MECON
Steel Authority of India Limited (SAIL) is a Maharatna public sector steel company under the Ministry of Steel and operates integrated steel plants across India.
Rashtriya Ispat Nigam Limited (RINL) operates the Visakhapatnam Steel Plant and is one of India’s major public sector steel producers.
NMDC Steel Limited operates the integrated steel plant at Nagarnar in Chhattisgarh, with a capacity of 3 MT.
MECON Limited is a public sector engineering and consultancy company under the Ministry of Steel, providing engineering, consultancy and project management services, particularly for the metals and mining sector.
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