Centre weighs ₹8,097 crore fresh equity support for RINL

The Union government is weighing a fresh ₹8,097 crore equity infusion into Rashtriya Ispat Nigam Limited (RINL), signalling continued financial backing for the Visakhapatnam Steel Plant as revival efforts enter a second phase.

The proposed support builds on the ₹11,440 crore package approved in January 2025, which combined equity infusion with debt restructuring. While that intervention helped address immediate liquidity concerns and revive operations, officials indicated that additional capital is required to stabilise the company’s finances over the medium term.

RINL, with a capacity of 7.3 million tonnes per annum, has faced sustained financial stress, reporting a negative net worth of ₹4,538 crore as of March 2024. Limited access to fresh borrowing and past defaults had constrained operations.

Since the 2025 package, operational performance has improved. The plant posted a cash profit of ₹54 crore in January 2026 and reached about 93 per cent capacity utilisation, indicating a gradual turnaround.

Officials said the proposed infusion is aimed at strengthening the balance sheet and ensuring uninterrupted production. With privatisation efforts yet to move forward, budgetary support remains central to safeguarding employment and sustaining the plant’s operations.

A final decision on the proposal is expected in the coming weeks.