Government Infuses Rs 1,650 Crore into RINL Amid Financial Troubles

06 Nov 2024 CW Team

"In this regard, the Government of India has infused ?5,000 million (?500 crore) towards equity on September 19, 2024, and a working capital loan of ?11,400 million on September 27, 2024," the document stated.

It also mentioned that SBICAPS, a wholly-owned subsidiary of the State Bank of India (SBI), is preparing a report on the sustainability of RINL.

"RINL is in serious financial trouble, and the Ministry of Steel is taking several steps to maintain RINL as a going concern in consultation with the Ministry of Finance," it added.

Rashtriya Ispat Nigam Ltd, under the Ministry of Steel, is a steel manufacturing company that operates a 7.5 million tonne plant in Visakhapatnam, Andhra Pradesh. The company has been facing significant financial and operational difficulties.

As of late October 2024, two of the three blast furnaces (BF) were closed, with the second BF operationalized after nearly four to six months. RINL's total dues have exceeded ?350,000 million.

In January 2021, the Cabinet Committee on Economic Affairs (CCEA) granted 'in-principle' approval for the 100% disinvestment of the government stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, along with RINL's stake in its subsidiaries and joint ventures through strategic disinvestment via privatization.

The government's decision to privatize the company has faced backlash from workers' unions, who argue that RINL's lack of captive iron ore mines is a major contributor to its ongoing crisis.

"RINL has never had captive mines. All other primary steel producers using blast furnaces benefit from captive mines, which significantly reduces their raw material costs. We have always purchased iron ore at market prices, adding transportation costs," stated J. Ayodhya Ram, a leader of a union protesting against RINL's privatization.

The government has infused around ?16,500 million into state-owned Rashtriya Ispat Nigam Ltd (RINL), which is grappling with operational and financial challenges, according to an official document. The government is also implementing various measures to sustain RINL as a viable entity, as noted by the Ministry of Steel. In this regard, the Government of India has infused ?5,000 million (?500 crore) towards equity on September 19, 2024, and a working capital loan of ?11,400 million on September 27, 2024, the document stated. It also mentioned that SBICAPS, a wholly-owned subsidiary of the State Bank of India (SBI), is preparing a report on the sustainability of RINL. RINL is in serious financial trouble, and the Ministry of Steel is taking several steps to maintain RINL as a going concern in consultation with the Ministry of Finance, it added. Rashtriya Ispat Nigam Ltd, under the Ministry of Steel, is a steel manufacturing company that operates a 7.5 million tonne plant in Visakhapatnam, Andhra Pradesh. The company has been facing significant financial and operational difficulties. As of late October 2024, two of the three blast furnaces (BF) were closed, with the second BF operationalized after nearly four to six months. RINL's total dues have exceeded ?350,000 million. In January 2021, the Cabinet Committee on Economic Affairs (CCEA) granted 'in-principle' approval for the 100% disinvestment of the government stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, along with RINL's stake in its subsidiaries and joint ventures through strategic disinvestment via privatization. The government's decision to privatize the company has faced backlash from workers' unions, who argue that RINL's lack of captive iron ore mines is a major contributor to its ongoing crisis. RINL has never had captive mines. All other primary steel producers using blast furnaces benefit from captive mines, which significantly reduces their raw material costs. We have always purchased iron ore at market prices, adding transportation costs, stated J. Ayodhya Ram, a leader of a union protesting against RINL's privatization.

Infrastructure Transport

13 Oct 2025

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Infrastructure Urban

13 Oct 2025

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Technology

13 Oct 2025

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..