Centre approves ₹11,440-crore revival plan for debt-laden RINL; 2 blast furnaces to start soon

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹11,440 crore revival plan for debt-laden Rashtriya Ispat Nigam Ltd. (RINL), Information and Broadcasting Minister Ashwini Vaishnaw said on Friday.

The package includes ₹10,300 crore as equity infusion and the conversion of ₹1,140 crore working capital loan into 7% non-cumulative preference share capital, redeemable after 10 years, an official statement said.

“Honourable Prime Minister has approved a package of ₹11,440 crore for the revival of Rashtriya Ispat Nigam Ltd. As we all know, RINL holds a special position in the steel industry and is the only offshore steel plant in Andhra Pradesh, located in Vizag,” Vaishnaw said.

The minister asserted that the revival plan would address the legacy problems faced by RINL, a public sector undertaking with an installed capacity of 7.3 million tonnes per annum (Mtpa) of liquid steel.

RINL had exhausted its sanctioned borrowing limits for working capital and defaulted on capex loan repayments and interest payments in June 2024.

The revival plan envisages that RINL will start full production with two blast furnaces in January 2025 and with three blast furnaces by August 2025.

"With this, all the employees of RINL as well as all the people connected with the economic activity of RINL will be immensely benefited and Andhra Pradesh will get a major steel plant revived in the coming days," Vaishnaw said.

Prime Minister Modi, in a post on X, said, “The Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of Andhra Pradesh. During yesterday’s Cabinet meeting, it was decided to provide equity support of over ₹10,000 crore for the plant. This has been done understanding the importance of the steel sector in building an Aatmanirbhar Bharat.”