Cabinet Approves ₹11,440 Crore Revival Package for Debt-Ridden RINL
The Union Cabinet has sanctioned a substantial ₹11,440 crore package to revitalize Rashtriya Ispat Nigam Limited (RINL), commonly known as Vizag Steel, addressing its critical financial challenges.
This strategic intervention aims to infuse ₹10,300 crore as equity capital into RINL and convert ₹1,140 crore of its working capital loans into 7% non-cumulative preference share capital, redeemable after a decade. This initiative is expected to resolve many of RINL’s longstanding operational issues.
Financial Health of RINL: As of March 31, 2024, RINL reported a net worth of ₹(-)4,538 crore, with current assets at ₹7,686.24 crore and current liabilities at ₹26,114.92 crore. The company had exhausted its sanctioned borrowing limits and defaulted on capital expenditure loan repayments and interest payments in June 2024.
Operational Plans: The revival plan outlines that RINL will commence full production with two blast furnaces in January 2025 and expand to three blast furnaces by August 2025. This phased approach is designed to stabilize the Indian steel market by augmenting steel production and safeguarding the livelihoods of employees and those dependent on the plant’s operations.
Strategic Measures: In addition to financial support, efforts will be made to secure raw materials and modernize the plant, ensuring its long-term sustainability and competitiveness in the steel industry.
The Odisha Cabinet chaired by Chief Minister Mohan Charan Majhi has approved a draft bill…
The winners of the Infosys Prize 2026 were announced by the Infosys Science Foundation (ISF).…
Noel N. Tata will retire as the Chairman and Director from the Tata Investment Corporation…
The 15th edition of the bilateral maritime exercise between the Indian Navy and the Royal…
The 8th edition of the India–Myanmar Naval Exercise (IMNEX-26) is conducted at the Visakhapatnam from…
The Indian Navy is organizing the 5th edition of the Pan-India Coastal Defence Exercise, called…