Government Considers RINL-SAIL Merger to Salvage Andhra Pradesh Steel Plant

The government is exploring various options, including a potential merger between RINL and SAIL, to address the financial and operational issues plaguing RINL's steel plant in Andhra Pradesh. Other measures being considered include capital infusion through land sales and obtaining bank loans. RINL is currently facing significant financial difficulties.

The government is deliberating the potential merger of Rashtriya Ispat Nigam Ltd (RINL) with another state-owned steel company, Steel Authority of India Limited (SAIL), as a viable solution to ensure the survival of RINL's steel plant in Andhra Pradesh, sources revealed.

To secure the necessary capital for the continued operation of RINL's plant, strategies such as selling land parcels to NMDC and securing bank loans are also being examined, according to these sources.

Key government officials, including the DFS and steel secretaries, along with top executives from public sector lender SBI, convened recently to discuss the predicament facing RINL. SBI has significant loan exposure to the company. Measures such as financial assistance from lenders and asset monetization through land sales are also being evaluated.

(With inputs from agencies.)