Cabinet Approves Rs 11,440 Crore Revival Plan for RINL

DECCAN FREEDOM NEWS

VIJAYAWADA

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a comprehensive revival and restructuring plan for Rashtriya Ispat Nigam Ltd (RINL) with a total outlay of Rs 11,440 crore. The plan is set to bring the Visakhapatnam Steel Plant (VSP) back to full operational capacity, benefiting both the steel industry and the economy of Andhra Pradesh.

Railways Minister Ashwini Vaishnaw expressed gratitude to the Prime Minister for the significant approval, highlighting RINL’s pivotal role in the steel sector. He noted that RINL, located on Andhra Pradesh’s coast near Vizag, is vital to India’s steel production and its economic development.

The revival plan includes a fresh equity infusion of Rs 10,300 crore and the conversion of Rs 1,140 crore of working capital loans into preference share capital. This financial support will enable RINL to address operational challenges, secure raw materials, and modernize the plant. RINL is set to operate two blast furnaces by January 2025 and achieve full production with three blast furnaces by August 2025.

RINL, a Schedule-A CPSE under the Ministry of Steel, operates the only government-owned offshore steel plant in Andhra Pradesh with an installed capacity of 7.3 million tonnes per annum. The revival will ensure stability in the Indian steel market, safeguard employee livelihoods, and align with the objectives of the National Steel Policy, 2017.

Minister Vaishnaw emphasized the importance of this revival package in resolving RINL’s historical challenges, adding that it will significantly benefit employees and those connected to its operations. He assured that the plant’s modernization and raw material procurement would be prioritized to ensure long-term sustainability.