GUWAHATI, Nov 3: The central government has injected Rs 1,650 crore into the Rashtriya Ispat Nigam Limited (RINL), popularly known as Vizag Steel, in the wake of operational and financial challenges the state-owned steel plant is facing, reports stated quoting an official document. The Ministry of Steel, the document stated, has noted that various actions are being undertaken to maintain RINL’s operations and has mooted a revival plan to save the industrial unit from closure.
“The Government of India contributed Rs 500 crore in equity on September 19, 2024, and provided a working capital loan of Rs 1,140 crore on September 27, 2024,” the document stated.
“With RINL in dire financial straits, the Ministry of Steel is actively consulting with the Ministry of Finance to implement measures to sustain RINL’s operations,” the report added.
RINL, operating under the Ministry of Steel, operates a 7.5 million tonne capacity plant located in Visakhapatnam, Andhra Pradesh. Currently grappling with acute financial and operational hiccups, it is hoped that the fresh infuse of funds by the government will help the industrial unit bounce back and return to profit-making ways in the future days.
