We Are Firm On RINL Revival: CM Naidu
RINL is facing financial difficulties due to increasing costs, heavy Capex, interest liabilities, and raw material insecurity
Andhra Pradesh CM N. Chandrababu Naidu with Nirmala Sitharaman, Union Minister of Finance and Steel Minister HD Kumaraswamy in New Delhi
Vijayawada: Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday said the TDP-led NDA government is very firm to put cash-strapped Rashtriya Ispat Nigam Limited (RINL) on back on the right track.
RINL, the corporate entity of Visakhapatnam Steel Plant is neck-deep in trouble due increasing cost of operations, heavy Capex and interest liabilities. Raw material insecurity has further worsened the financial health of the India’s first shore-based integrated steel plant with a capacity of 7.3 million tonnes. RINL’s outstanding liabilities along with interest burden is estimated at Rs 35,000 crore.
After meeting Central leaders in New Delhi, the Chief Minister said they are trying for a comprehensive revival package to facilitate RINL, considered ‘Pride of Andhra Pradesh’ achieve a turnaround.
In a significant development, the Chief Minister is understood to have discussed various options to revive RINL during his meeting with Union Steel Minister Nirmala Seetharaman and Union Steel and Heavy Industries Minister HD Kumaraswamy on Wednesday.
Later Naidu said there is one option for merger of RINL with Steel Authority of India Limited provided SAIL management and government of India are agreeable to it. Moreover, NMDC wants RINL land on lease but the steel plant needs a package to take care of working capital, raw material security as well as funding to meet its future needs. The employees of RINL are protesting since the decision of Union Cabinet on Economic Affairs in January 2021 to privatise RINL. Due to protests the strategic disinvestment decision has been put on hold.
