heavy weight The government is making every possible effort to bail out the debt burdened government steel company RINL from the crisis. In this connection, the government is considering the possibility of merging RINL with public sector steel company SAIL. Sources said that apart from selling land to NMDC, schemes like bank loan are also being worked out to provide capital to continue the work at RINL's plant in Andhra Pradesh. Recently, an important meeting was also held between the Financial Services Secretary, Steel Secretary and top officials of public sector SBI on the issue of RINL.
RINL has a lot of debt with SBI
Let us tell you that State Bank of India (SBI) has given a lot of loan to RINL. Sources said, “The government wants to find a permanent solution to this issue. One of the options being discussed is the merger of RINL with SAIL.” Rashtriya Ispat Nigam Limited (RINL), operating under the Ministry of Steel, operates a 75 lakh tonne capacity steel plant in Visakhapatnam, Andhra Pradesh. The Steel Ministry also has the control of Steel Authority of India Limited (SAIL), the country's leading steel production company.
Arrangement of capital is also being considered
According to sources, arranging capital to run RINL is also being considered. Apart from this, measures like talking to lenders for financial assistance and selling 1500-2000 acres of land to NMDC for setting up a pellet plant are also being considered. The labor unions believe that unlike other primary steel makers, RINL never got the benefit of privately owned iron ore mines, which is the main reason for the crisis faced by RINL.
Total outstanding on the company is more than Rs 35,000 crore
The Cabinet Committee on Economic Affairs had in January 2021 given 'in-principle' approval for 100 per cent disinvestment of government stake in RINL through privatization. According to a Steel Ministry document, RINL is running at its minimum capacity due to being in severe financial crisis and is facing continuous losses. Its total outstanding has exceeded Rs 35,000 crore.
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