Union Cabinet Greenlights Rs 11,440 Crore Revival Plan for RINL

The Union Cabinet has sanctioned a Rs 11,440 crore revival package for Rashtriya Ispat Nigam Ltd (RINL). The plan involves a significant equity infusion and restructured loans, aiming to address operational challenges and stabilize steel production, preserving jobs and enhancing the Indian steel industry.

In a significant move aimed at bolstering India's steel industry, the Union Cabinet has endorsed a revival package worth Rs 11,440 crore for Rashtriya Ispat Nigam Ltd (RINL), according to a statement on Friday. This initiative is expected to resolve longstanding issues plaguing the debt-laden company and includes an infusion of Rs 10,300 crore as equity capital.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has also approved converting a Rs 1,140 crore working capital loan into preference shares, as part of an effort to maintain RINL as a viable enterprise. Information and Broadcasting Minister Ashwini Vaishnaw emphasized that the package would help RINL overcome operational hurdles, crucial for maximizing production efficiency.

RINL, operating under the Ministry of Steel with an installed capacity of 7.3 Mtpa, plans to boost its production by initiating two blast furnaces by January 2025 and a third by August 2025. The financial infusion aims to restore production stability in the national interest, thereby safeguarding jobs and ensuring competitive steel supply in the market.

(With inputs from agencies.)