The Ministry of Steel is actively pursuing the merger of debt-ridden Rashtriya Ispat Nigam Ltd (RINL) with Steel Authority of India Ltd (SAIL), as part of efforts to rescue the financially troubled state-run firm.
A senior official revealed that the government has no plans to privatise RINL, opting instead for SAIL to oversee its management and provide financial assistance to reduce its significant debt.
RINL, which operates the Visakhapatnam Steel Plant, defaulted on loans worth Rs 410.5 crore as of June and recorded a loss of Rs 2,859 crore in FY 2022-23, with a total debt of Rs 20,400 crore.
Earlier proposals, including the sale of surplus land in Visakhapatnam to cover debt, have been put on hold. The official emphasised that selling land isn’t a sustainable solution to RINL’s financial woes.
RINL’s poor liquidity and negative earnings have led India Ratings and Research to downgrade its credit rating. Although the government had previously approved the disinvestment of RINL, progress has been slow. SAIL is expected to play a key role in stabilising the company’s financial health.
