• The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a Rs 11,440 crore revival package for Rashtriya Ispat Nigam Ltd (RINL) to help the struggling steelmaker tide over its financial woes.

• In January 2021, the CCEA approved a 100 per cent disinvestment of a government stake in debt-laden Rashtriya Ispat Nigam Ltd (RINL) amid poor financial and operational progress.

• RINL’s steel plant in Visakhapatnam has been facing severe financial and operational issues for the past few years. Two of the three blast furnaces  were closed till October 2024, when the second blast furnace was made operationalised after nearly 4-6 months. The overall dues of RINL have gone above Rs 35,000 crore.

• As per the minister, in July-August this year, all three furnaces will be operational with over 92 per cent production.

• In this overall package of Rs 11,440 crore, a fresh equity infusion of Rs 10,300 crore is there and the conversion of working capital loan into preferred share capital of Rs 1,140 crore. 

• With this, all the employees of RINL as well as all the people connected with the economic activities of RINL will be immensely benefited and Andhra Pradesh will have a major steel plant revived in the coming days.

Rashtriya Ispat Nigam Ltd (RINL)

• Rashtriya Ispat Nigam Limited (RINL) is a Navratna CPSE under the administrative control of the Ministry of Steel with 100 per cent ownership of the government of India. 

• RINL operates the Visakhapatnam Steel Plant (VSP), the only offshore steel plant under the government sector in Andhra Pradesh. It is also known as Vizag Steel.

• It was incorporated under the Indian Companies Act, 1956 with the objective to be a self-supporting, growing company in production of steel with continuous improvement in productivity, quality and consumer satisfaction.

• The authorised share capital of the company is Rs 8,000 crore.

• RINL has an integrated steel plant of 7.3 MTPA liquid steel capacity in Visakhapatnam.

• In addition, the company operates three mines — Jaggayyapeta Mines (Limestone) and Garbham Mines (Manganese) in Andhra Pradesh and Madharam Mines (Dolomite) in Telangana.

• RINL also has mines for quartzite and river sand at Kintada in Andhra Pradesh. 

• RINL is marketing its products through a wide marketing network of five regional offices, 20 branch sales offices and 20 stock yards which cater to the delivery requirements across the country.

• RINL has one subsidiary, Eastern Investment Limited (EIL) with 51 per cent shareholding. 

• EIL, in turn, has two subsidiaries, Orissa Mineral Development Company Ltd. (OMDC) and Bisra Stone Lime Company Ltd (BSLC). These three companies became Public Sector Undertakings with effect from March 19, 2010. The headquarters of these companies are in Bhubaneswar, Odisha.

• RINL is also a partner in joint venture with International Coal Ventures Private Limited.

Manorama Yearbook app is now available on Google Play Store and iOS App Store