The Union Cabinet has approved a comprehensive Rs 11,440 crore revitalization plan for the financially troubled Rashtriya Ispat Nigam Ltd (RINL), the government announced on Friday. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, greenlit the revival strategy, which includes an equity capital infusion of Rs 10,300 crore into RINL and the conversion of a Rs 1,140 crore working capital loan into non-cumulative preference share capital, redeemable after 10 years. This move aims to stabilize RINL’s financial standing and ensure its long-term viability.
According to Information and Broadcasting Minister Ashwini Vaishnaw, the revival package addresses many of the longstanding challenges faced by RINL. The equity capital infusion is expected to resolve operational hurdles related to working capital and help the company restart blast furnace operations efficiently.
The plan also aims to gradually bring RINL’s production to full capacity, which is crucial for ensuring stability in India’s steel industry, boosting steel production, and safeguarding the livelihoods of both permanent and contract workers associated with the plant. Under the plan, RINL is set to begin full-scale production with two blast furnaces in January 2025, and increase that to three by August 2025.
RINL, under the Ministry of Steel, operates the Visakhapatnam Steel Plant (VSP), Andhra Pradesh’s only offshore steel facility, with a capacity of 7.3 million tons of liquid steel annually. The financial condition of RINL had become critical, having exhausted its borrowing limits from banks and defaulted on loan repayments in June 2024.
Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, is a leading public sector steel producer in India, headquartered in Visakhapatnam, Andhra Pradesh. Established in 1982, RINL operates one of the most modern steel plants in the country, featuring state-of-the-art technology and a focus on energy efficiency and environmental sustainability.
The company specializes in the production of high-quality long steel products, including wire rods, bars, and structural sections, which cater to diverse sectors such as construction, infrastructure, railways, and defense. RINL is renowned for its commitment to innovation, customer-centric approach, and adherence to global quality standards. As a key contributor to India’s industrial growth, the company emphasizes sustainable practices and continues to play a pivotal role in meeting the nation’s steel demand.
