CITU Condemns Centre’s Decision to Hand Over ‘Mini Ratna’ FSNL to Japanese Firm

Newsclick Report

New Delhi: The Centre of Indian Trade Unions (CITU) has denounced the Narendra Modi-led National Democratic Alliance government’s move to hand over Ferro Scrap Nigam Limited (FSNL), a ‘mini ratna’ designated Central public sector enterprise (CPSE) to Japanese firm, Konoike Transport, along with management control.  FSNL is a 100% subsidiary of MSTC Limited.

In a statement following a post on X (formerly Twitter) by DIPAM secretary saying: “A new board led by the strategic partner takes charge of FSNL,” CITU said “Not only that through such a Share Purchase Agreement, the government has paved the way for privatizing the entire scrap handling business of the country exclusively to private players.”

Calling upon all sections of the working class to protest against this “anti-national activity” of the government, CITU said the move exposed the Centre’s “sheer obsession for privatization and obedience to private corporates’ interest.”

Read the full release below:

CITU Denounces the Privatisation of FSNL

Yet another heinous offence has been committed by the BJP government by way of handing over the Mini Ratna designated CPSE M/s Ferro Scrap Nigam Limited (FSNL) to M/s  Konoike Transport Co. Ltd. , a multifaceted Japanese corporation listed on the Tokyo Stock Exchange.   FSNL is a 100% subsidiary of MSTC Limited which has made a disclosure on 21st January 2025 that pursuant to share purchase agreement dated 24th October, 2024 executed by MSTC Limited, FSNL and M/s. Konoike Transport Co. Ltd., 100% equity shares of FSNL has been transferred to M/s. Konoike Transport Co. Ltd. and accordingly, FSNL ceases to be a subsidiary of MSTC Limited.

The move of privatizing FSNL has been going on since last one decade or so and the united struggle by the workers could stall it so long.

Soon after the signing of the share purchase agreement dated 24th October, 2024, the functional unions of FSNL in various Steel manufacturing units of SAIL objected the move vehemently urging the government to desist from such an anti national move, but the same was not given any heed to and the Steel Ministry intimated in writing that “Protection of FSNL employees services will be governed by the relevant clauses of the Share Purchase Agreement’ signed between MSTC Limited and Konoike Transport Co. Ltd on 24.10.2024….. This ministry has nothing to do in this matter.” The so called relevant clause in the Share Purchase Agreement specifically states that “the company shall not remove or retrench any part of the Employee for a period of I (one) year from the closing date”. Not only that through such a Share Purchase Agreement, the government has paved the way for privatizing the entire scrap handling business of the country exclusively to private players.

A company having a reserve fund of about Rs. 200 crore and movable assets worth Rs.100 crore employing more than 600 employees and 5000 contract workers, giving a dividend of Rs. 7/- to Rs.9.5/- per share of Rs.10/- to the government every year, can in no way just be doled out to any private entity in such a clandestine fashion. CITU centre has expressed concern over the issue of privatisation quite a number of times through issuance of letters to the concerned ministry requesting them to desist from such move of strategic disinvestment of FSNL giving full justifications against the move. But when privatization of public assets to private hand is the primary agenda of Modi led BJP Government, obviously there was no response!

Centre of Indian Trade Unions (CITU) vehemently condemns the activity of the government and calls upon all sections of the working class to rise in rage and united condemnation of such an anti national activity of the government which has to be combated through counter offensive of demanding stoppage of selling out such a golden egg producing company to a private entity because of its sheer obsession for privatization and obedience to private corporates’ interest.

Tapan Sen, General Secretary.