More Stories

Informist, Friday, Jan. 17, 2025

--Cabinet OKs revival plan for Rashtriya Ispat Nigam for INR 114.40 bln 

--Govt: Rashtriya Ispat revival includes INR-103-bln equity capital infusion 

--Rashtriya Ispat revival plan to convert INR 11.4 bln working capital loan 

NEW DELHI – The Cabinet Committee on Economic Affairs has approved a INR 114.40-billion revival plan for Rashtriya Ispat Nigam Ltd., the steel ministry said in a release on Friday. The revival plan includes equity capital infusion of INR 103 billion and conversion of the working capital loan of INR 11.40 billion to 7% non-cumulative preference shares redeemable after 10 years.

Rashtriya Ispat, which is wholly-owned by the government, operates Visakhapatnam Steel Plant, the only offshore steel plant under the government sector in Andhra Pradesh. It has an installed capacity of 7.3 million tons per annum of liquid steel.

"The financial condition of RINL (Rashtriya Ispat Nigam Ltd) is critical," the ministry said. The net worth of the company was INR (-)45.38 billion as of Mar. 31. The current assets of the company were INR 76.86 billion, as against current liabilities of INR 261.15 billion, the ministry said.

"RINL has exhausted the sanctioned borrowing limits from banks for working capital and was 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 ministry said.

The equity infusion in Rashtriya Ispat will help it overcome the operational problems related to raising working capital and starting blast furnace operations, the release said. As per the revival plan, the company will start full production with two blast furnaces in January and with three blast furnaces in August.  End

Reported by Shubham Rana

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.