The Ministry of Steel is reportedly pushing for a merger between Rashtriya Ispat Nigam Ltd. (RINL) and Steel Authority of India Ltd. (SAIL), as RINL faces mounting financial challenges. A senior government official revealed that the ministry is working on this plan to stabilize RINL, which has been struggling with significant debt, rather than pursuing its privatization. SAIL is expected to provide management support and financial assistance to reduce RINL’s debt burden, according to the official.
RINL, the entity behind Vizag Steel Plant, has defaulted on ₹410.5 crore in loan payments as of June and recorded a loss of ₹2,859 crore in the 2022-23 fiscal year. Its total debt now stands at ₹20,400 crore. Plans to sell off RINL’s land for debt repayment have been set aside, with the government focusing instead on the potential merger.
Despite earlier talks of privatizing RINL, Union Steel Minister HD Kumaraswamy ruled out this option shortly after assuming office in July. In early 2021, the central government had approved a proposal for 100% disinvestment in RINL, but progress on that front has been slow. RINL’s debts also include ₹15,000 crore in various loans and guarantees, which have been flagged as mismanagement during discussions with the Centre.
Officials now believe that merging with SAIL, rather than selling off assets, is the best path to address RINL’s financial woes and secure its future. Rashtriya Ispat Nigam Ltd. (RINL), also known as Vizag Steel, is a leading state-owned producer in India. Established in 1982, it operates one of the largest integrated plants in Visakhapatnam, Andhra Pradesh. RINL is renowned for producing high-quality steel products, including wire rods, rounds, rebars, and structurals, catering to a wide range of industries such as construction, infrastructure, and manufacturing.
The company is known for its commitment to sustainability and energy efficiency, continuously working to enhance its production capacity while reducing environmental impact. RINL plays a key role in supporting India’s needs and contributing to the country’s industrial growth.
Steel Authority of India Ltd. (SAIL) is one of India’s largest and most prominent companies. Established in 1954, it operates several integrated plants across the country, producing a wide range of products such as hot and cold rolled sheets, galvanized steel, and structural steel.
SAIL plays a critical role in supporting key industries, including construction, infrastructure, and transportation, by providing high-quality products. The company is also known for its focus on research and development to improve production processes, enhance product quality, and adopt sustainable practices. As a public sector enterprise, SAIL is instrumental in driving India’s industrial growth and meeting its steel demands.
