The Government of India has approved a substantial infusion of Rs 11,440 crore as equity and preferential share capital to support the operations of Rashtriya Ispat Nigam Ltd (RINL) and maintain its status as a going concern.
This strategic financial support, as announced in a press release by the Ministry of Steel, is aimed at strengthening the financial position of RINL, a key player in India’s steel sector.
The revival package, which was announced earlier this year by Union Minister Ashwini Vaishnaw, includes a fresh equity infusion of Rs 10,300 crore and the conversion of a working capital loan into preferential share capital amounting to Rs 1,140 crore.
This decision was made during a cabinet meeting chaired by Prime Minister Narendra Modi, with the goal of improving the company’s techno-economic performance, enhancing capacity utilisation, and rationalising fixed costs.
The revitalisation effort aligns with the objectives set out in the National Steel Policy of 2017, aiming to make the steel industry more competitive and efficient. The package is expected to not only ensure RINL’s financial stability but also strengthen its role in the national steel landscape.
