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New Delhi: <\/strong>The government has injected approximately Rs 1,650 crore into the state-owned RINL, which is facing significant operational and financial challenges, as per an official document. The Ministry of Steel has noted that various actions are being undertaken to maintain RINL\u2019s operations.<\/p>\n According to the document, \u201cThe Government of India contributed Rs 500 crore in equity on September 19, 2024, and provided a working capital loan of Rs 1,140 crore on September 27, 2024.\u201d<\/p>\n The document also mentions that SBICAPS, a subsidiary of the State Bank of India, is developing a report on RINL\u2019s viability.<\/p>\n The note further states, \u201cWith RINL in dire financial straits, the Ministry of Steel is actively consulting with the Ministry of Finance to implement measures to sustain RINL\u2019s operations.\u201d<\/p>\n Rashtriya Ispat Nigam Ltd (RINL), operating under the Ministry of Steel, is a steel production enterprise. It operates a 7.5 million tonne capacity plant located in Visakhapatnam, Andhra Pradesh, and is currently grappling with acute financial and operational difficulties.<\/p>\n Two out of three blast furnaces were shut down until October 2028, when the second furnace was operationalized after a 4-6 month hiatus. RINL\u2019s debts have exceeded Rs 35,000 crore.<\/p>\n In January 2021, the Cabinet Committee on Economic Affairs (CCEA) granted \u2018in-principle\u2019 approval for the disinvestment of 100% of the government\u2019s stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, along with its stakes in subsidiaries and joint ventures, through strategic disinvestment for privatisation.<\/p>\n The decision to privatise has met with opposition from workers\u2019 unions, which argue that one of the main reasons for the company\u2019s crisis is the lack of captive iron ore mines.<\/p>\n \u201cRINL has never possessed captive mines. Unlike us, all other primary steel producers who use blast furnaces benefit from having captive mines, which aids in reducing raw material costs. We have always purchased iron ore at market prices, to which transportation costs are also added,\u201d stated J Ayodhya Ram, a union leader opposing the privatisation of RINL.<\/p>\n<\/p><\/div>\n [ad_2] [ad_1] New Delhi: The government has injected approximately Rs 1,650 crore into the state-owned RINL, which is facing significant operational and financial challenges, as per an official document. The Ministry of Steel has noted that various actions are being undertaken to maintain RINL\u2019s operations. According to the document, \u201cThe Government of India contributed Rs 500 […]<\/p>\n","protected":false},"author":1,"featured_media":50668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-50667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nation"],"jetpack_featured_media_url":"https:\/\/thenftimes.com\/wp-content\/uploads\/2024\/11\/download-9.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/50667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/comments?post=50667"}],"version-history":[{"count":1,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/50667\/revisions"}],"predecessor-version":[{"id":50669,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/50667\/revisions\/50669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media\/50668"}],"wp:attachment":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media?parent=50667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/categories?post=50667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/tags?post=50667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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