Centre Approves ₹11,440 Crore Revival Package for Visakhapatnam Steel Plant

Centre gives ₹11,440 crore revival package to Visakhapatnam Steel Plant*. Centre sanctioned ₹11,440-crore revival package for Visakhapatnam Steel Plant or Rashtriya Ispat Nigam Limited (RINL), union minister Ashwini Vaishnaw said on Friday.It later approved the same, following a CCEA headed by PM Narendra Modi.The installed production capacity of 7.3 million tonnes per annum RINL is one of the big Central Public Sector Enterprises under the Ministry of Steel.

“The deal will comprise equity infusion to the tune of ₹10,300 crore and conversion of ₹1,140 crore worth working capital loans into 7% non-cumulative preference shares redeemable after a decade.. This will stabilize the operations, get the plant up to full capacity, and save the livelihoods of its employees.

Describing it as the largest support package in RINL’s history, Vaishnaw emphasized the plant’s strategic importance as India’s sole offshore steel facility under government control. The financial boost will enable two blast furnaces to resume operations by January 2025, with full capacity targeted by August of the same year.Prime Minister Modi expressed through a tweet on X: “This iconic plant holds sentimental as well as economic importance for the state of Andhra Pradesh.” He also informed that the strength of India’s steel sector remained an integral vision of the Indian government in bringing Aatmanirbhar Bharat.

Union Steel Minister H.D. Kumaraswamy stated that RINL’s privatization is off the table now with the infusion of capital. He said that the revival package came after very long discussions and consultations with the Finance Ministry, banks, and other stakeholders. The captive iron ore mines in Odisha will be sought so that raw material costs can be significantly reduced.With a debt of over ₹35,000 crore, RINL’s troubles started when the company expanded costly from 3 MTPA to 7.3 MTPA during 2014-2017. The nonavailability of captive iron ore mines also added stress to the operation.

Kumaraswamy remained hopeful that the transformation of RINL would make it a leading steelmaker.Local leaders, such as Ram Mohan Naidu, welcomed the package: promised an assured future for the plant and justified the contribution that steel was to make for economic growth.