India’s Steel Ministry Eyes $2 Billion Revival Plan for RINL to Boost Long-Term Growth

India’s Steel Ministry is at high-level talks for a $2 billion comprehensive long-term revival plan, aimed at resuscitating state-run steel giant Rashtriya Ispat Nigam Limited (RINL). On Wednesday, January 3, government officials confirmed that initial discussions had already consulted with representatives from the Prime Minister’s Office (PMO) and finance ministry, indicating a tectonic shift away from earlier bids for RINL’s full privatization.

The government highlighted RINL’s revival in the medium term as a critical activity in nurturing the future of Indian manufacturing, reducing import dependence on steel, and complementing the burgeoning demand from the infrastructure sector. The Ministry of Steel made an official statement, with the position that “A robust and self-reliant steel sector is critical to the long-term goals of India, and the revival of RINL is going to play a pivotal role in achieving these objectives.”

With an annual capacity of 7.3 million tons, RINL operates a steel mill in Vishakhapatnam and remains heir to a significant debt burden. The component of the $2 billion revival plan focused on alleviating a $4.16 billion debt run. Other discussions concern a modernization plan for RINL facilities including the obliteration of three blast furnaces to be replaced by electric arc furnaces (EAF) at an estimated cost of $353 million.

The ministry is also chatting with Japanese steelmaking joint ventures and South Korea’s POSCO regarding the modernization of RINL in terms of technological upgrades. At least seven Japanese companies have expressed interest in partnering with RINL to produce specialty, automotive, and construction steel products.

While the details of the revival package remain under review, officials expect that these efforts will significantly contribute to India’s steel industry, positioning RINL as a vital player in the nation’s economic growth and reducing its dependence on steel imports in the future.