Revival Plan for Rashtriya Ispat Nigam Ltd Ensures Steel Sector Growth
The Cabinet Committee on Economic Affairs (CCEA) has approved a ₹11,440 crore Revival Plan for Rashtriya Ispat Nigam Ltd (RINL) to revive operations at Visakhapatnam Steel Plant (VSP), safeguarding jobs and boosting domestic steel production.
Key Highlights of the Revival Plan for Rashtriya Ispat Nigam Ltd
- Equity Infusion: ₹10,300 crore allocated to restore full production capacity.
- Debt Restructuring: ₹1,140 crore working capital loan converted into 7% Non-Cumulative Preference Shares, redeemable after 10 years.
- Objective: Achieve financial stability and operational efficiency for RINL.
Current Financial Challenges Addressed by the Revival Plan for Rashtriya Ispat Nigam Ltd
As of March 31, 2024:
- Net Worth: Negative at ₹(-)4,538 crore.
- Liabilities vs. Assets: Current liabilities (₹26,114.92 crore) exceed assets (₹7,686.24 crore).
- Defaults: Missed capex loan and interest repayments in June 2024.
Implementation Timeline for RINL Revival Plan
- January 2025: Two blast furnaces operational.
- August 2025: All three blast furnaces active, ensuring 100% production capacity.
- Impact: Stabilizes India’s steel market and secures livelihoods for RINL employees.
Strategic Importance of the Revival Plan for Rashtriya Ispat Nigam Ltd
- Aligns with National Steel Policy 2017 and Atmanirbhar Bharat initiatives.
- Strengthens India’s position as a global steel producer.
- Supports infrastructure development and economic growth.
FAQs on the Revival Plan for Rashtriya Ispat Nigam Ltd
1. What is the Revival Plan for Rashtriya Ispat Nigam Ltd?
The plan includes ₹11,440 crore in equity infusion and debt restructuring to revive RINL’s Visakhapatnam Steel Plant.
2. How will the revival plan protect jobs?
By restoring full production capacity, it ensures continued operations and safeguards 22,000+ direct and indirect jobs.
3. What is the timeline for RINL’s revival?
All three blast furnaces will be operational by August 2025, ensuring financial stability.
Conclusion
The Revival Plan for Rashtriya Ispat Nigam Ltd secures India’s steel future and economic resilience.
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