The government is formulating a restructuring plan for Rashtriya Ispat Nigam (RINL), ruling out the possibility of privatising the debt-hit entity or merger with the Steel Authority of India.
RINL, commonly known as Vizag Steel Plant has been working with banks for a new restructuring package as to enhance working capital, a senior bureaucrat told NDTV Profit.
To keep it afloat, the government in last two months has infused Rs 1,650 crore into RINL. Out of the total, Rs 500 crore in equity and the rest as working capital, official said.
Besides, top management have seen a new chairman and MD appointed to lead the revival. Former chairman Atul Bhatt opted for leave till retirement amid financial crisis state-run has been facing.
RINL debt is about Rs 18,000 crore currently the plant is operating only with one blast furnace out of total three.
“One furnace at the Vizag Steel Plant is now fully operational after being revived. While another furnace will be optimised shortly,“ the official added.
In 2021, government had decided 100% divestment of centre's stake in RINL and its subsidiaries. There was not much progress on this front due to strong oppose from the unions and even Steel Ministry.x
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