RINL gets Rs 11,440 crore revival plan

CCEA approved infusion includes ₹10,300 crore as equity capital and conversion of ₹1,140 crore working capital loan as 7% Non-cumulative Preference Share Capital

GN Bureau | January 17, 2025


#public sector   #Steel   #CCEA   #RINL   #PSU  


The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi, has approved the revival plan for RINL for a total of Rs 11,440 crore. The infusion includes ₹10,300 crore as equity capital into Rashtriya Ispat Nigam Ltd. (RINL) and Conversion of ₹1,140 crore working capital loan as 7% Non-cumulative Preference Share Capital redeemable after 10 years to keep RINL as a going concern.

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

The financial condition of RINL is critical: as on March 31, 2024, its net worth was Rs (-)4538.00 crore, current assets were Rs 7,686.24 and current liabilities were Rs 26,114.92 crore. 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.

The equity infusion of Rs 10,300 crore into RINL will help it overcome the operational problems related to raising working capital and start Blast furnace operations in the most productive way.  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 August 2025.

Steel production is a core sector of the economy and is one of the indicators of economic development of any country.  The revival and continued operation of VSP at its full capacity will ensure efficient utilization of public resources and help in achieving the objectives of National Steel Policy, 2017.

This strategic decision underscores the Government's steadfast commitment to supporting indigenous industries for Atmanirbhar Bharat.

Comments

 

Other News

India`s AI future hinges on high-quality, clean data

For nearly a decade, countries have been adopting artificial intelligence, machine learning and large language models on a large scale, showcasing their efficiency in managing complex tasks and significantly boosting productivity across corporate and government sectors. The Indian government is also positi

Urbanisation away from metros: An idea whose time has come

The news of deteriorating infrastructure in the metro cities of Mumbai, Delhi, Kolkata and Chennai is constantly in the newspapers. Even cities like Pune in their quest to become metros are facing issues like shortage of water supply, floods during the rains, massive traffic jams etc. due to poor and under

‘Open When…’ is truly a companion for life’s twists and turns

Open When… By Dr. Julie Smith PenguinRadomHouse, 402 pages, Rs 899 There are times

Understanding Bharat’s history from its own perspective

Eminent Distorians: Twists and Truths in Bharat`s History By Utpal Kumar BluOne Ink, 334 pages

‘MAGA’ + ‘MIGA’ = ‘MEGA’ partnership for prosperity: Modi

Prime minister Narendra Modi has linked the dream of a Viksit Bharat with US president Donald Trump’s slogan, ‘Make America Great Again’, or ‘MAGA’, saying that when these two democracies work together, i.e. ‘MAGA’ plus ‘Make India Great Again’ (‘

ONOE: Anti-federalism or pro-reform?

The government`s move to implement ‘One Nation, One Election’ (ONOE) has ignited widespread debate. On one hand, it offers tangible benefits, such as removing the possibility of a governance paralysis and reducing election costs. On the other hand, the opposition and sections of civil society s

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter