Center gave financial assistance to Rashtriya Ispat Nigam Limited
New Delhi| The Central Government has given financial assistance of Rs 1650 crore to Rashtriya Ispat Nigam Limited (RINIL). According to an official document, the debt of this government company, which is facing operational and financial crisis, has continuously increased. In such a situation, the Union Steel Ministry has now taken steps to end the crisis.
The ministry said it is taking several steps to run RINL. The government reported that it has given Rs 500 crore in RINIL as equity on 19 September 2024. Whereas on 27 September 2024, it has given him Rs 1140 crore as Working Capital Loan.
According to the government, State Bank of India (SBI)-owned SBICaps (SBICAPS) has also been asked to prepare a report on the affordability of RINL. It is also mentioned in this document that RINL is in serious financial crisis and the Steel Ministry is in discussions with the Finance Ministry to resolve this concern.
It is noteworthy that Rashtriya Ispat Nigam Limited (RINL) is a steel production company of the Union Steel Ministry. It owns a 7.5 million-ton plant in Visakhapatnam, Andhra Pradesh. However, for the last few years this company has been facing many financial and operational problems. Two of its three blast furnaces (furnaces) were previously closed until October 2028. Due to this, the debt of RINL has increased to 35 thousand crores.
Earlier in January, 2021, the Cabinet’s Economic Affairs Committee (CCEA) had given in-principle approval for 100 per cent disinvestment of government stake in RINL through strategic disinvestment. However, the government’s decision to privatize the company was opposed by labor unions. He said that RINL does not have iron ore mines of its own use. Due to this he is facing the current crisis.
