RINL’s Future In Focus Amid Plans For Mittal Steel Plant

Visakhapatnam: Ther eports on proposal to establish a greenfield steel plant by ArcelorMittal and Nippon Steel India with a massive investment of Rs 1.4 lakh crore near Nakkapalli in Anakapalle district at a time when the Centre has pumped Rs 1650 crore into Rashtriya Ispat Nigam Limited (RINL) to revive Visakhapatnam Steel Plant located nearby, has turned into a heated discussion point.

RINL, the corporate entity of VSP, India’s first shore-based integrated steel plant, has turned sick due to lack of raw material security and heavy debt burden following investment of Rs 16,300 crore on capacity expansion through internal accruals and bank loans. RINL is still among PSUs listed for strategic disinvestment by the Centre.

As a sequel to the demand from the State government and the trade unions, the Centre as a last-ditch effort is now trying to put it back on the track by studying the pros and cons of its amalgamation with SAIL or considering a one-time rehabilitation package with capital restructuring under the mentorship of SAIL.

Meanwhile, the disclosure by entrepreneur and BJP MP from Anakapalle CM Ramesh that ArcelorMittal and Nippon Steel India have come forward for India’s largest single investment near Anakapalle has sparked off a debate. Though an official announcement is awaited on the project, there is speculation that 2,600 acres earmarked for the Bulk Drug Park near Nakkapalli, part of Visakhapatnam-Chennai Industrial Corridor, will be allotted to the project proponent of the steel plant. The Centre has already sanctioned Rs 1,000 crore for creating the infrastructure for the first integrated Bulk Drug Park in Andhra Pradesh.

“Instead of talking about bringing a massive investment on a new steel plant, let the government make public its plans to revive RINL, which was set up after Visakha Ukku Andhrula Hakku, in which 32 protestors laid down their lives,” AITUC national vice-president and RINL recognised trade union leader D Adinarayana, told Bizz Buzz.

TDP, the main constituent of the NDA coalition in the State, said on X, “ArcelorMittalNippon Steel India (AM/NS India) to set up a 1,40,000-crore steel project in Andhra Pradesh...the biggest investment in India.”

Ramesh, earlier stated on X, “Thrilled to share that Anakapalle is set for transformation. ArcelorMittal Group & Nippon Steel are bringing a Rs 70,000 crore (Phase-1) investment in a mega steel plant near Nakkapalle, set to unfold 2-phases, creating around 20,000 jobs. Govt. will officially announce it soon.”

In a Linkedin post, IT, Electronics and HRD MInister Nara Lokesh, said the mega proposal near Anakapalle is one of the largest greenfield projects in recent times.

He said the project was finalised during a Zoom call in July, where he had the opportunity to speak with ArcelorMittal CEO Aditya Mittal. “This meeting marked a key milestone, capping off extensive discussions that began with my initial outreach to AM/NS India’s team. When I first initiated dialogue, my primary aim was to comprehensively understand their specific requirements and expectations for investing in Andhra Pradesh,” he said in the Linkedin post.

Lokesh said, “These conversations evolved, culminating in a pivotal call between our Chief Minister Nara Chandrababu Naidu garu and Lakshmi Mittal. Our focus has always been to align investment opportunities with our State’s growth vision, and this landmark project represents a significant leap forward for our industrial landscape.”