Government Approves revival plan for Rashtriya Ispat Nigam Ltd worth Rs 11,440 crores

The equity infusion of Rs 10,300 crore into RINL will help it overcome the operational problems related to raising working capital and starting Blast furnace operations most productively. 

Government Approves revival plan for Rashtriya Ispat Nigam Ltd worth Rs 11,440 crores
Government Approves revival plan for Rashtriya Ispat Nigam Ltd worth Rs 11,440 crores

The government has approved the revival plan for RINL for a total of Rs 11,440 crores. The infusion includes Rs 10,300 crore as equity capital into Rashtriya Ispat Nigam Ltd. (RINL) and Conversion of Rs 1140 crore working capital loan as 7% Non-cumulative Preference Share Capital redeemable after 10 years to keep RINL as a going concern.

The financial condition of RINL is critical (as of 31.03.2024, the net worth of RINL was Rs (-)4538.00 crore, current assets were Rs 7,686.24 and current liabilities were Rs 26,114.92 crores). RINL has exhausted the sanctioned borrowing limits from banks for working capital and was not in a position to get further loans from Banks. RINL also defaulted on the Capex Loan repayments and Interest payments in June 2024.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : Shri Vijoy Kumar Singh appointed as Director (IM&O) of CONCOR

The equity infusion of Rs 10,300 crore into RINL will help it overcome the operational problems related to raising working capital and starting Blast furnace operations most productively. 

This would allow the company to gradually reach its full production capacity which is critical and is in the national interest to have stability in the Indian steel market by augmenting steel production and also save the livelihoods of employees (regular and contractual) and those dependent on the operations of the steel plant. The revival plan envisages that RINL will start full production with two blast furnaces in January 2025 and with three blast furnaces in August 2025.

Read Also : Secretary, MoPNG visited RE Pavilion at IEW 2025, hosted by HPCL

RINL is a Schedule–A CPSE under the administrative control of the Ministry of Steel with 100% ownership of the Government of India. RINL operates the Visakhapatnam Steel Plant (VSP), the only offshore steel plant under the Government sector in the state of Andhra Pradesh. It has an installed capacity of 7.3 Mtpa of liquid steel.

Read Also : Civil Construction PSU stock, NBCC witnessed Stock Decline over 4% amid market volatility