Revival Lifeline: Rs 11,440 Crore Boost for Rashtriya Ispat Nigam Ltd

The Union Cabinet has approved a Rs 11,440 crore package to revive Rashtriya Ispat Nigam Ltd (RINL), aiming to alleviate its financial challenges. Though the government had previously planned disinvestment, no privatisation will occur. The initiative underscores the importance of the steel sector for India's self-reliance.

The Union Cabinet has sanctioned a robust revival package amounting to Rs 11,440 crore for the struggling Rashtriya Ispat Nigam Ltd (RINL), a move aimed at addressing the steelmaker's significant financial difficulties. Union Steel Minister HD Kumaraswamy confirmed the development on Friday, emphatically dismissing any privatisation plans for the steel entity.

Recognizing the pivotal role of the Visakhapatnam Steel Plant, especially to the people of Andhra Pradesh, Prime Minister Narendra Modi echoed sentiments of national self-reliance, emphasizing the strategic significance of the steel sector. The financial lifeline—approved after thorough deliberations during the Cabinet meeting—includes an equity boost exceeding Rs 10,000 crore.

Struggling with debts above Rs 35,000 crore, RINL has faced downturns since undertaking expansions beyond its initial capacity, compounded by costly raw material procurement. The revival plan envisions operationalizing all furnaces with 92% efficiency by next year, alongside securing captive iron ore mines, aiming to position Visakhapatnam as India's top steel producer.

(With inputs from agencies.)