Govt injects Rs 16.50 billion into RINL to ensure its sustainability
ECONOMY & POLICY

Govt injects Rs 16.50 billion into RINL to ensure its sustainability

The government has invested approximately Rs 16.50 billion in the state-owned Rashtriya Ispat Nigam (RINL), which is currently facing operational and financial challenges, as stated in an official document. The Ministry of Steel mentioned in a note that it is implementing various measures to ensure RINL remains a viable entity.

The document indicated that on September 19, 2024, the Government of India infused Rs 5 billion as equity and subsequently provided a working capital loan of Rs 11.40 billion on September 27, 2024.

Furthermore, it noted that SBICAPS, a wholly-owned subsidiary of the State Bank of India (SBI), is preparing a report assessing the sustainability of RINL.

According to the document, RINL is experiencing severe financial difficulties, prompting the Ministry of Steel to undertake several initiatives in collaboration with the Ministry of Finance to keep the company operational.

RINL, operating under the Ministry of Steel, is a steel manufacturing entity that operates a 7.5 million tonne plant located in Visakhapatnam, Andhra Pradesh. The company has been grappling with significant financial and operational issues.

As of October 2028, two of the three blast furnaces were shut down, with the second furnace being reactivated after approximately 4 to 6 months. RINL's overall outstanding dues have exceeded Rs 350 billion. In January 2021, the Cabinet Committee on Economic Affairs (CCEA) granted 'in-principle' approval for the complete disinvestment of the government's stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, including RINL's stakes in its subsidiaries and joint ventures through strategic disinvestment and privatisation. This decision has met with opposition from workers' unions, which argue that RINL's lack of access to captive iron ore mines is a significant factor contributing to the company's crisis.

The government has invested approximately Rs 16.50 billion in the state-owned Rashtriya Ispat Nigam (RINL), which is currently facing operational and financial challenges, as stated in an official document. The Ministry of Steel mentioned in a note that it is implementing various measures to ensure RINL remains a viable entity. The document indicated that on September 19, 2024, the Government of India infused Rs 5 billion as equity and subsequently provided a working capital loan of Rs 11.40 billion on September 27, 2024. Furthermore, it noted that SBICAPS, a wholly-owned subsidiary of the State Bank of India (SBI), is preparing a report assessing the sustainability of RINL. According to the document, RINL is experiencing severe financial difficulties, prompting the Ministry of Steel to undertake several initiatives in collaboration with the Ministry of Finance to keep the company operational. RINL, operating under the Ministry of Steel, is a steel manufacturing entity that operates a 7.5 million tonne plant located in Visakhapatnam, Andhra Pradesh. The company has been grappling with significant financial and operational issues. As of October 2028, two of the three blast furnaces were shut down, with the second furnace being reactivated after approximately 4 to 6 months. RINL's overall outstanding dues have exceeded Rs 350 billion. In January 2021, the Cabinet Committee on Economic Affairs (CCEA) granted 'in-principle' approval for the complete disinvestment of the government's stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, including RINL's stakes in its subsidiaries and joint ventures through strategic disinvestment and privatisation. This decision has met with opposition from workers' unions, which argue that RINL's lack of access to captive iron ore mines is a significant factor contributing to the company's crisis.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code