Cabinet Approved Rs 114.40 Bn Revival Package for RINL

20 Jan 2025 CW Team

RINL, a Schedule-A Central Public Sector Enterprise under the Ministry of Steel, operates the Visakhapatnam Steel Plant (VSP) in Andhra Pradesh, with a production capacity of 7.3 million tonnes per annum (Mtpa) of liquid steel. However, the company has faced significant financial stress, reporting a net worth of Rs (-)45.38 billion as of March 31, 2024, current assets of Rs 76.86 billion, and liabilities of Rs 261.14 billion. Additionally, RINL has been unable to meet its capex loan repayments and interest obligations since June 2024.

Union officials emphasised the crucial role of the revival package in ensuring the operational sustainability of RINL and stabilising the Indian steel market. A government official stated that the equity infusion would enable RINL to address working capital constraints and restart its blast furnaces, allowing the company to achieve its full production capacity.

As part of the revival plan, two blast furnaces are expected to resume operations by January 2025, with all three becoming fully operational by August 2025. This move is considered essential for boosting domestic steel production, which plays a vital role in the country’s economy.

An official statement highlighted that the revival of RINL is not only critical for stabilizing the steel market but also for safeguarding the livelihoods of thousands of employees and contractors reliant on the plant’s operations. Steel production is recognized as a core economic sector and a key indicator of industrial growth. The decision aligns with the objectives of the National Steel Policy, 2017, which advocates for efficient resource utilization and self-reliance in steel production.

The statement further noted that the revival plan underscores the government’s commitment to supporting indigenous industries as part of the Atmanirbhar Bharat initiative.

The Cabinet Committee on Economic Affairs (CCEA), under the leadership of Prime Minister Narendra Modi, approved a revival package worth Rs 114.40 billion for Rashtriya Ispat Nigam (RINL) to tackle the financial challenges faced by the state-owned steel producer. The package includes Rs 103 billion for equity infusion and the conversion of Rs 11.40 billion in working capital loans into 7 per cent non-cumulative preference share capital, redeemable after 10 years. RINL, a Schedule-A Central Public Sector Enterprise under the Ministry of Steel, operates the Visakhapatnam Steel Plant (VSP) in Andhra Pradesh, with a production capacity of 7.3 million tonnes per annum (Mtpa) of liquid steel. However, the company has faced significant financial stress, reporting a net worth of Rs (-)45.38 billion as of March 31, 2024, current assets of Rs 76.86 billion, and liabilities of Rs 261.14 billion. Additionally, RINL has been unable to meet its capex loan repayments and interest obligations since June 2024. Union officials emphasised the crucial role of the revival package in ensuring the operational sustainability of RINL and stabilising the Indian steel market. A government official stated that the equity infusion would enable RINL to address working capital constraints and restart its blast furnaces, allowing the company to achieve its full production capacity. As part of the revival plan, two blast furnaces are expected to resume operations by January 2025, with all three becoming fully operational by August 2025. This move is considered essential for boosting domestic steel production, which plays a vital role in the country’s economy. An official statement highlighted that the revival of RINL is not only critical for stabilizing the steel market but also for safeguarding the livelihoods of thousands of employees and contractors reliant on the plant’s operations. Steel production is recognized as a core economic sector and a key indicator of industrial growth. The decision aligns with the objectives of the National Steel Policy, 2017, which advocates for efficient resource utilization and self-reliance in steel production. The statement further noted that the revival plan underscores the government’s commitment to supporting indigenous industries as part of the Atmanirbhar Bharat initiative.

Infrastructure Urban

13 Oct 2025

Daikin Boosts Haryana’s Innovation Push with Rs 10 billion R&D Plan

Japanese multinational Daikin Industries has committed an investment of Rs 10 billion to set up a new research and development centre in Haryana. The proposed facility will focus on advanced technologies and sustainable industrial solutions, marking a significant boost to the state’s innovation and industrial ecosystem. The announcement follows the signing of a Memorandum of Understanding (MoU) in Osaka, Japan, during a visit by a Haryana government delegation held from October 6 to 8. The MoU was signed by Amit Kumar Agrawal, Commissioner and Secretary, Industries and Commerce Department, ..

Building Material

13 Oct 2025

Lloyds Metals to Build Rs 250 billion Steel Plant in Gadchiroli

Lloyds Metals & Energy Limited (LMEL) has announced an investment of Rs 250 billion aimed at transforming Gadchiroli in Maharashtra from a region once associated with the red corridor into a key industrial and growth hub. The company’s plans are centred on establishing an integrated steel production ecosystem, which will contribute significantly to regional development and employment. As part of its expansion strategy, LMEL is setting up a 4.5-million-tonne blast furnace in Gadchiroli, scheduled for completion by 2027–28, along with another 1.2-million-tonne facility in Chandrapur by 2029..

Infrastructure Urban

13 Oct 2025

UPI Crosses 500 Million Users, Fuels MSME and Digital Growth

The Unified Payments Interface (UPI) has achieved a new milestone, surpassing 500 million consumers and 65 million merchants across India. The platform, developed by the National Payments Corporation of India (NPCI), has expanded its reach to nearly 99 percent of the country’s pin codes, underlining its deep penetration into both urban and rural markets. According to a report by NPCI and the Boston Consulting Group (BCG) launched during the Global Fintech Fest 2025, UPI has evolved from being a digital payments mechanism into a key enabler of financial inclusion and small business growth. I..