Saturday , 11 January 2025
Home News Govt to Finalize Revival Plan for RINL Steel Plant in a Month: Steel secretary
NewsSteel DailyTrending News

Govt to Finalize Revival Plan for RINL Steel Plant in a Month: Steel secretary

Image for representation purposes only; no ownership rights are held.

The Indian government is to firm up a detailed revival package for Rashtriya Ispat Nigam Ltd, or RINL Steel Plant, commonly referred to as Vizag Steel Plant, in a month. According to an exclusive statement made to CNBC-TV18, Steel Secretary Sandeep Poundrik highlighted that the proposal focuses on sorting out the financial problems of RINL and makes sure that the steel maker significantly contributes to the process.

RINL operates an integrated steel plant with 7.5 MT in Visakhapatnam, Andhra Pradesh but has liabilities amounting to approximately ₹35,000 crore. Secretary Poundrik underlined that the government will provide an impetus to RINL for revival but said the steel maker has to infuse its resources into part liabilities.

We have taken a call on reviving the RINL Steel Plant,” Poundrik said. He added that he was confident that the government would decide on the revival plan shortly to stabilize the debt-trapped public sector unit on a sustainable track.

RINL has been a major player in India’s steel production landscape. It has been continuously facing persistent challenges in the form of rising debt, operational inefficiencies, and global market pressures. All these issues have put a question mark on the long-term viability of the plant, which may pose a challenge in sustaining its workforce and production capacity.

This parallels the structural changes being applied in the department by the Steel Ministry, such as the proposed merger of the National Mineral Development Corporation (NMDC) and Kudremukh Iron Ore Company Ltd (KIOCL). Even Karnataka’s levies on its mines have upset this minister, who complained to the Mines Ministry to take adequate measures to discourage these levies from affecting adversely the industry immediately.

Reviving RINL is critical for strengthening the production capacity of steel in India and towards the long-term sustainability of public sector steel plants. In this regard, the decision taken by the government in the next few weeks will have far-reaching implications for the domestic steel industry and its stakeholders.

Bookmark (0)
Please login to bookmarkClose

No account yet? Register

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

JSW Group Confirms Bid for Akzo Nobel India’s Business

The JSW Group has stepped into the race to acquire Akzo Nobel’s...

Andhra Pradesh to Boom in Real Estate: CM Chandrababu Naidu

Andhra Pradesh Chief Minister N Chandrababu Naidu, on Friday expressing his vision...

Chennai Metro Phase-II Construction Proceeds with 70% Completion of Station Work

Approximately 70 percent of the entire station construction work from Poonamallee to...

Tata Steel and JSW Steel Grapple with Shrinking Cash Reserves Amid Industry Challenges

The two largest steelmakers in India are swiftly burning holes in their...