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.
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