Government Injects Funds to Salvage RINL amid Financial Turbulence

The Indian government has injected Rs 1,650 crore into state-owned Rashtriya Ispat Nigam Ltd (RINL) to address its financial difficulties. Steps are being taken to keep RINL operational amid plans for privatization, facing opposition due to its lack of captive iron ore mines, which adds to its cost burdens.

The government has infused Rs 1,650 crore into Rashtriya Ispat Nigam Ltd (RINL), a state-owned steel company, struggling with financial and operational hurdles, as revealed in an official document.

According to the Ministry of Steel, Rs 500 crore was allotted for equity on September 19, 2024, and an additional Rs 1,140 crore as a working capital loan on September 27, 2024. SBICAPS, a subsidiary of the State Bank of India, is assessing RINL's sustainability.

RINL, known as Visakhapatnam Steel Plant, has faced significant issues due to not owning captive iron ore mines, unlike its counterparts. While the government explores privatization, workers' unions protest, arguing this lack of resources has exacerbated the plant's financial crisis.

(With inputs from agencies.)