RINL to Monetise ₹200 Cr in Land Assets in FY26 Amid Financial Strain

In a continued effort to stay afloat amid mounting financial pressure, state-run steelmaker Rashtriya Ispat Nigam Ltd (RINL) has identified non-core land parcels worth ₹200 crores for monetisation in FY26. This follows successful asset sales of ₹248 crore in FY25, as the debt-ridden PSU seeks to generate cash and regain operational stability.

“The funds raised through these land sales will go directly to RINL, not the Centre,” a senior government official confirmed to Moneycontrol, adding that the assets have already been earmarked.

This monetisation plan is part of a broader revival strategy for RINL, which operates the Visakhapatnam Steel Plant (VSP), India’s only shore-based integrated steel facility in the public sector. The Prime Minister-headed Cabinet Committee on Economic Affairs approved a ₹11,440 crore revival package in January 2025. It involves an equity infusion of ₹10,300 crore and conversion of ₹1,140 crore worth of loans into 7% preference shares, redeemable after 10 years.

RINL has been battling severe financial constraints, including delayed salary payments in late 2024. “The equity infusion was necessary to keep RINL a going concern,” Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, said in Parliament in February.

Between April and December 2024, RINL produced 2.68 million tonnes of hot metal and 2.37 million tonnes of saleable steel but reported a pre-tax loss of ₹3,943.43 crore on a total income of ₹12,615.03 crore. Its total liabilities reached ₹38,965 crore by December-end.

The government regards reviving RINL as instrumental in its support for the steel industry, which is the backbone of India’s industrial growth. During the India Steel Summit in April, PM Modi reiterated the importance of steel for national development, referring to it as the “skeleton of modern economies.”

RINL has also gained a reputation for sustainability, bagging the National Energy Leader Award from CII-GBC in 2024, as India goes green with steel production as per global climate aspirations.