Rashtriya Ispat Nigam Limited (RINL) plans to generate around $481 million by leveraging non-priority and inactive assets. RINL aims to monetize extensive unused land near its 7.3 million metric ton capacity mill in Vishakhapatnam, alongside a forged steel wheel manufacturing unit in Uttar Pradesh, capable of producing 100,000 wheels annually.
Chairman Atul Bhatt highlighted that successfully executing this monetization plan within the current fiscal year will help RINL regain cash profits by bolstering production. Facing a loss of $361 million in the fiscal year 2022-23, RINL confronts challenges, including a production cost disadvantage of INR 6,000/mt ($72/mt) due to procuring iron ore from the open market instead of a captive mine. Additionally, the company bears an unsustainable debt of INR 230 billion ($2.77 billion).
Bhatt emphasized that the monetization initiative aims to alleviate debt burdens, enhance working capital for raw material procurement, and optimize steel production levels.
