North News
New Delhi, January 18
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a significant revival plan for Rashtriya Ispat Nigam Ltd. (RINL), allocating Rs 11,440 crore to stabilize the company. The plan includes Rs 10,300 crore in equity capital and the conversion of a ₹1,140 crore working capital loan into 7% non-cumulative preference share capital, redeemable after 10 years. This move is designed to address RINL’s financial struggles and ensure its long-term viability.
The RINL operates the Visakhapatnam Steel Plant (VSP), India’s only offshore steel plant in the public sector. However, the company has been facing severe financial challenges, with liabilities far exceeding assets. As of March 2024, RINL’s net worth stood at a negative ₹4,538 crore, and it has defaulted on loan repayments and interest.
The approved infusion aims to stabilize RINL’s operations, facilitate the restart of blast furnace operations, and support steel production, which is critical for India’s economic development. The company is expected to reach full production capacity by August 2025. This revival plan aligns with the National Steel Policy, 2017, and the Government’s commitment to supporting domestic industries under the Atmanirbhar Bharat initiative.
