India approves over ₹10,000 crore funds to revive state-owned steel maker RINL

Prime Minister of India, Narendra Modi, on Friday, Janaury 17, approved the allocation package of ₹11440 crore for the revival of the State-owned Rashtriya Ispat Nigam Limited (RINL), according to the Union Minister Ashwini Vaishnaw. 

“Honorable Prime Minister Shri Narendra Modi ji has approved a package of ₹11,440 crore rupees for the revival of Rashtriya Ispat Nigam Limited (RINL),” said the Minister in an official statement.

According to the Union Minister the Government of India's overall package of the revival plan comprises a fresh fund infusion of ₹10,300 crore along with a working capital loan converted into preferred share capital of ₹1,140 crore.

“In this overall package of ₹11,440, fresh equity infusion of ₹10,300 crore is there and the conversion of working capital loan into preferred share capital of ₹1,140 crore,” he said. 

RINL's contribution to Indian Steel

Vaishnaw also highlighted the key position of the company's contribution to India's steel sector, and focused on that the revival plan is set to solve the “legacy problems that RINL used to face.”

“As we all know that R.I.N.L has a very special position in the entire steel industry. It is one of those plants which is located at the coast of Andhra Pradesh in Vizag,” said the union minister.

Vaishnaw also assured that amid the revival efforts, the government will also focus on securing raw materials for the company and modernising the plant in Andhra Pradesh.

“With this, all the employees of RINL as well as all the people connected with the economic activities of RINL will be immensely benefited and Andhra Pradesh will have a major steel plant revived in the coming days,” he said.

Prime Minister Narendra Modi also took the opportunity to focus on the importance of Aatmanirbhar Bharat in the steel industry. 

“The Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of Andhra Pradesh. During yesterday’s Cabinet meeting, it was decided to provide equity support of over Rs. 10,000 crore for the plant. This has been done understanding the importance of the steel sector in building an Aatmanirbhar Bharat,” said Prime Minister Narendra Modi in a social media post on platform X.

Highlighting the future plans of the company, the minister commented that RINL will start functioning with two glass furnaces, and by August 2025, they plan to start all three glass furnaces.

(This article has been updated to add new information.)