Date:21/11/2005 URL: http://www.thehindubusinessline.com/2005/11/21/stories/2005112101270800.htm

Back SAIL and RINL merger

This refers to the article "Panel to study feasibility of steel, mining, PSU mergers" (Business Line November 20).

Apparently, the decision has been taken to scrap the merger proposal of SAIL and Rashtriya Ispat Nigam Ltd (RINL).

But the merger would bring in many advantages such as economies of large scale operations, greater efficiency in managing factors of production under one strong management (inclusive of top executives from SAIL and RINL), enhancing competitiveness and the like.

The Central government often stresses the importance of consolidation in banking and other sectors in the context of global economic competition.

In this context the issue of merger of SAIL and RINL needs a review by the Ministry and the authorities concerned in the larger interests of corporate growth and economic development.

V. Venugopal

Chennai

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