NEW DELHI, JANUARY 17, 2025: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi has approved the revival plan for RINL (Rashtriya Ispat Nigam Limited) for a total of Rs 11,440 crore.
RINL is a Schedule – A CPSE under the administrative control of the Ministry of Steel with 100% ownership of the Government of India. RINL operates the Visakhapatnam Steel Plant (VSP), the only offshore steel plant under the Government sector in the state of Andhra Pradesh. It has an installed capacity of 7.3 Mtpa of liquid steel.
The equity infusion of Rs.10,300 crore into RINL will help it overcome the operational problems related to raising working capital and start Blast furnace operations in the most productive way.
This would allow the company to gradually reach its full production capacity which is critical and is in the national interest to have stability in the Indian steel market by augmenting steel production and also save the livelihoods of employees (regular and contractual) and those dependent on the operations of the steel plant.
The revival plan envisages that RINL will start full production with two blast furnaces in January 2025 and with three blast furnaces by August 2025.
Steel production is a core sector of the economy and is one of the indicators of economic development of any country. The revival and continued operation of VSP at its full capacity will ensure efficient utilization of public resources and help in achieving the objectives of National Steel Policy, 2017.
Speaking on the occasion, Ashwini Vaishnaw, Minister of Railways, Information & Broadcasting, and Electronics and Information Technology, said ““Friends, Hon’ble Prime Minister has approved a package of Rs. 11,440 crore for revival of RINL, Rashtriya Ispat Nigam Limited. As we all know, RINL has a very special position in the entire steel industry”.
This is one of those plants which is located on the coast in Andhra Pradesh, near Vizag, and this is a very important steel company in the overall steel sector of the country. With this revival package, many of the historical legacy problems that RINL used to face will be resolved. Simultaneously, a lot of effort is going to be put into securing the raw material for RINL and for the modernization of the plant.
In this package of 11,440 Crore, a fresh equity infusion of Rs. 10,300 Cr is there, and conversion of working capital loan into the preference share capital of Rs. 1,140 Cr. Combined, this is a package of 11,440 Cr.
With this, all the employees of RINL as well as all the people connected with economic activities of RINL will be immensely benefited, and Andhra Pradesh will get a major steel plant revived in the coming days. Very soon RINL will start functioning with two blast furnaces, and by August it is planned to start all the three blast furnaces.”
Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of AP: PM
Prime Minister Narendra Modi remarked that the Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of Andhra Pradesh. “During yesterday’s Cabinet meeting, it was decided to provide equity support of over Rs. 10,000 crore for the plant”, Modi stated.
The Prime Minister posted on X: “The Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of Andhra Pradesh. During yesterday’s Cabinet meeting, it was decided to provide equity support of over Rs. 10,000 crore for the plant. This has been done by understanding the importance of the steel sector in building an Aatmanirbhar Bharat.”
