Calls for its resurgence
Mr HD Kumaraswamy, Union Minister for Steel & Heavy Industries and Mr Bhupathiraju Srinivasa Varma, Minister of State recently visited Visakhapatnam steel plant wherein they expressed confidence in the RINL collective and its potential to bounce back and march towards profitability.
“My goal is to bring RINL to the Number one place in the country” said Mr Kumaraswamy amidst thunderous applause.
Acknowledging the struggle and hardship faced by the steel plant and its workers he commended their commitment towards achieving steady progress in the last 3 months.
Mr Kumaraswamy expressed confidence that RINL will play a major role towards achieving the 300 million tons production target as part of Viksit Bharat- Atma Nirbhar Bharat.
He further thanked Prime Minister Mr Narendra Modi for his concern and help towards reviving RINL by sanctioning Rs. 11,440 crores package which is unheard of in the Indian steel industry he said.
The financial condition of RINL is said to be critical (as on 31.03.2024, the net worth of RINL was Rs (-)4538.00 crore, current assets were Rs 7,686.24 and current liabilities were Rs 26,114.92 crores).
In addition, RINL has exhausted the sanctioned borrowing limits from banks for working capital and is not in a position to get further loans from Banks. RINL also defaulted on the Capex Loan repayments and Interest payments in June 2024.
The equity infusion of Rs 10,300 crore into RINL is being done to help it overcome the operational problems related to raising working capital and start Blast furnace operations in the most productive way.
This would also allow the company to gradually reach its full production capacity which is critical and is in the national interest to have stability in the Indian steel market by augmenting steel production and also save the livelihoods of employees (regular and contractual) and those dependent on the operations of the steel plant.
The revival plan envisages that RINL will start full production with two blast furnaces in January 2025 and with three blast furnaces August 2025. The steel plant has an installed capacity of 7.3 Mtpa of liquid steel.
Mr AK Saxena, CMD (additional charge), RINL thanked Mr HD Kumaraswamy and other politicians for their great support towards the revival of RINL.
The union minister for steel was accompanied by Members of Parliament Mr M SriBharat, Mr CM Ramesh, Mr Palla Srinivasa Rao, MLA-Gajuwaka & state president, TDP, Mr Sandeep Poundrik, IAS, Secretary, Steel, Govt. Of India, Dr. Sanjay Roy, Jt. Secy, Ministry of Steel, Mr Y Satya Kumar Yadav, Minister for Health, Family
welfare & Medical Education and many other dignitaries.
RINL is a Schedule–A CPSE under the administrative control of the Ministry of Steel with 100% ownership of the Government of India. RINL operates the Visakhapatnam Steel Plant (VSP), the only offshore steel plant under the Government sector in the state of Andhra Pradesh.