RINL to Restart Third Blast Furnace by June-End, Boosting Steel Output

State-owned steel producer Rashtriya Ispat Nigam Limited (RINL) will restart its third blast furnace (BF) by the end of June, a crucial phase in its revival plan after it went through a major financial crisis during the previous year. The company officials confirmed the action on Monday, June 16.

Two of these blast furnaces with a combined annual crude steel-making capacity of 5 million metric tonnes (mt) are currently in operation by RINL. The commissioning of the third BF would increase the capacity by another 2.5 million mt per year to a total of 7.5 million mt.

The third blast furnace was closed in 2023 following a cash shortage that saw the firm unable to purchase basic raw materials. Production was reduced against the backdrop of increasing losses and tight working capital.

The turnaround was initiated in January 2025, when the Indian government cleared a bailout package valued at $1.34 billion to resuscitate the troubled steel PSU. The relief package consists of a combination of equity infusion and debt restructuring to help relieve liquidity pressures and return production levels to normal.

With the new funds in position, RINL has been gradually attempting to stabilize operations. The third blast furnace restart is likely to give a major boost to production, increase capacity utilization, and bring the company one step closer to becoming financially viable.

The Visakhapatnam facility is one of India’s largest integrated steelmakers and is deemed strategically vital in the public sector. The revamp of RINL is closely observed by the steel industry, as well as policymakers, especially under broader plans to integrate India’s homegrown steelmaking prowess as part of the National Steel Policy.

Though restart is a key milestone, RINL’s management continues to concentrate on operational efficiency, cost discipline, and market competitiveness to ensure continued recovery in subsequent quarters.