Government Infusion Sparks Hope for Troubled Steel Giant RINL

The government has infused Rs 1,650 crore to support troubled steel manufacturer Rashtriya Ispat Nigam Ltd (RINL). Despite severe financial and operational issues, strategies are underway to sustain operations, with SBICAPS evaluating the company's sustainability. Privatisation plans remain controversial amid stakeholder concerns over the lack of captive mines.

The government has pumped a substantial Rs 1,650 crore into the beleaguered state-owned steel manufacturer, Rashtriya Ispat Nigam Ltd (RINL), facing serious operational and financial challenges.

In a strategic move documented by the Ministry of Steel, Rs 500 crore was injected as equity, and a working capital loan of Rs 1,140 crore was provided in late September 2024 to keep the company afloat.

Meanwhile, the State Bank of India's subsidiary, SBICAPS, is working on a comprehensive report assessing RINL's sustainability, as the steel giant grapples with over Rs 35,000 crore in dues, and controversial privatisation plans stir unrest among union workers.

(With inputs from agencies.)