Cabinet approves Rs 11,440 crores revival plan for RINL

(FastMailNews):--The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved the revival plan for RINL for a total of Rs 11,440 crores. The infusion includes ?10,300 crore as equity capital into Rashtriya Ispat Nigam Ltd. (RINL) and Conversion of ?1140 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.

The financial condition of RINL is critical (as on 31.03.2024, the net worth of RINL was ?(-)4538.00 crore, current assets were ?7,686.24 and current liabilities were?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.

The equity infusion of ?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.

Related Business News

Gold and Silver Prices Decline, Know the New Rates

Gold and silver prices are witnessing continuous fluctuations. On Monday, as soon as the commodity market (MCX) opened, a slight decline was recorded in gold and silver prices.On MCX, the Gold June 5, 2026 contract opened at ?1,52,695 compared to the previous close of ?1,52,699. The Silver May....

Wholesale Inflation Rises to 3.88% in March; Oil and Metals Become Costlier, Sharp Surge in Jewellery Prices

The Wholesale Price Index (WPI)-based inflation rate rose to 3.88 percent in March, up from 2.13 percent in February,the Ministry of Commerce and Industry said on Wednesday. The rise in wholesale inflation in March was primarily driven by an increase in prices of crude petroleum and natural ga....

‘We Will Not Allow China to Buy Iranian Oil’: US Treasury Secretary Scott Bessent

Amid ongoing tensions in the Middle East, the United States has taken a tough stance on China, making it clear that it will not allow Beijing to purchase oil from Iran. US Treasury Secretary Scott Bessent said that the proposed blockade will ensure that no Chinese or other ships can pass throu....

Economy News: Stock market falls and gold-silver prices drop after US-Iran talks fail

Local stock markets witnessed a decline on Monday. The BSE Sensex fell by 703 points, while the NSE Nifty dropped 208 points. The failure of talks between the US and Iran for an agreement, along with fears that the conflict may continue for a long time, caused crude oil prices to rise sharply,....

LPG Crisis Deepens Amid War; Opposition Targets Government Over Black Marketing

NEW DELHI: As the US-Israel-Iran conflict enters its fourth week, the deepening energy crisis is severely affecting households across the country, leading to a growing shortage of cooking gas. Complaints about LPG shortages and rising black marketing have intensified political confrontations an....