Rashtriya Ispat Nigam Ltd (RINL) on Friday said the government has extended by one year its navratna status, a coveted tag that empowers a PSU to enjoy greater financial and functional autonomy.
"While reposing the confidence in RINL Collective, Government of India has accorded approval for extending navratna status to RINL for further one year i.e till November 2013," RINL said in a statement.
RINL was awarded the navratna status on November 16, 2010 with the condition that it would get its shares listed on the bourses within two years.
However, despite several attempts, RINL's shares could not be listed due to a number of reasons including poor market conditions.
"RINL's performance on all fronts including investment of major amount in expansion and modernisation of plant and completing all necessary formalities even for Initial Public Offering were considered by the Government in extending the navratna status for another one year," the statement said.
RINL chairman and managing director AP Choudhary thanked the ministry of steel for helping the company to get the extension of the coveted status. Meanwhile, Choudhury said sales of long steel products has shown strong signs of pick up and is expected to register sharp improvement, considering the dry season and growth in infrastructure work.
"International prices of scrap, finished products and all steel related items have risen considerably fuelling the growth in demand," he added.