Vinod Bhat
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved a comprehensive revival plan for Rashtriya Ispat Nigam Ltd (RINL) at a total cost of Rs 11,440 crore.
Shri Ashwini Vaishnaw, Minister of Railways, Information and Broadcasting, and Electronics and Information Technology, expressed gratitude to Prime Minister Modi for approving this significant revival and restructuring plan for RINL. He emphasized RINL’s unique position in the steel industry, noting that it is a crucial steel company located on the coast of Andhra Pradesh, near Visakhapatnam.
Minister Vaishnaw stated that the employees of RINL, along with individuals engaged in economic activities related to the company, will greatly benefit from the revival. Furthermore, this initiative will lead to the rejuvenation of a major steel plant in Andhra Pradesh in the near future.
The revival plan outlines that RINL will commence full production using two blast furnaces by January 2025 and will operate three blast furnaces by August 2025.
RINL is a Schedule-A Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Steel and is wholly owned by the Government of India. It operates the Visakhapatnam Steel Plant (VSP), which stands as the only offshore steel plant within the government sector in Andhra Pradesh, with an installed capacity of 7.3 million tonnes per annum (Mtpa) of liquid steel.
The equity infusion of Rs 10,300 crore will assist RINL in addressing operational issues concerning working capital and will facilitate the effective initiation of blast furnace operations. This infusion is vital for gradually reaching the plant’s full production capacity, which is essential for maintaining stability in the Indian steel market and securing livelihoods for both regular and contractual employees, as well as those dependent on the plant’s operations.
Steel production is a critical sector of the economy and a key indicator of a country’s economic development. The revival and sustained operation of VSP at full capacity will ensure the efficient utilization of public resources and contribute to achieving the objectives outlined in the National Steel Policy of 2017.
Speaking on this occasion, Minister Vaishnaw noted, “The Honorable Prime Minister has approved a package of Rs 11,440 crore for the revival of RINL, Rashtriya Ispat Nigam Limited. As we all know, RINL holds a very special position in the steel industry. This plant, located on the coast of Andhra Pradesh near Vizag, plays a vital role in the overall steel sector of the country. With this revival package, many historical legacy issues that RINL has faced will be addressed. Additionally, significant efforts will be directed toward securing raw materials for RINL and modernizing the plant.
This package includes a fresh equity infusion of Rs 10,300 crore, along with the conversion of a working capital loan into preference share capital amounting to Rs 1,140 crore. Together, this constitutes a total package of Rs 11,440 crore.
With these developments, all employees of RINL and those connected with its economic activities will benefit greatly, and we can expect the significant revival of this major steel plant in Andhra Pradesh in the upcoming days. Very soon, RINL is expected to begin operations with two blast furnaces, and by August, we plan to activate all three blast furnaces.”
