Cabinet approves ₹11,440 crore revival plan for RINL (Visakhapatnam Steel Plant)
The Ministry of Steel announced on 17 January 2025 that the Cabinet Committee on Economic Affairs had approved a ₹11,440 crore revival plan for Rashtriya Ispat Nigam Ltd (RINL), which runs the Visakhapatnam Steel Plant.
Summary
The Ministry of Steel announced on 17 January 2025 that the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, had approved a revival plan worth ₹11,440 crore for Rashtriya Ispat Nigam Ltd (RINL). The plan includes ₹10,300 crore of equity capital and the conversion of a ₹1,140 crore working capital loan into 7% non-cumulative preference share capital redeemable after 10 years. RINL, a Schedule-A CPSE wholly owned by the Government of India, operates the Visakhapatnam Steel Plant in Andhra Pradesh, the only offshore steel plant in the government sector, with 7.3 Mtpa of liquid steel capacity. Its net worth was ₹(-)4,538 crore on 31 March 2024. The plan envisages full production with two blast furnaces in January 2025 and three by August 2025.
Key facts
- Announced
- 17 January 2025 (Ministry of Steel)
- Approved by
- CCEA, chaired by PM Narendra Modi
- Total
- ₹11,440 crore: ₹10,300 crore equity + ₹1,140 crore loan converted to 7% preference shares
- Company
- RINL, Schedule-A CPSE, 100% Government-owned
- Plant
- Visakhapatnam Steel Plant, Andhra Pradesh; 7.3 Mtpa liquid steel
- Net worth (31.03.2024)
- ₹(-)4,538 crore
Practice MCQs 3 questions
Rashtriya Ispat Nigam Ltd (RINL), for which a ₹11,440 crore revival plan was approved in January 2025, operates which steel plant?
Show answer
Correct answer: B — Visakhapatnam Steel Plant
PIB (Steel): RINL operates the Visakhapatnam Steel Plant in Andhra Pradesh, the only offshore steel plant in the government sector.
How much equity capital does the RINL revival plan approved by the CCEA (announced 17 January 2025) provide?
Show answer
Correct answer: D — ₹10,300 crore
PIB: the ₹11,440 crore plan includes ₹10,300 crore equity capital and conversion of a ₹1,140 crore working capital loan into preference share capital.
Consider the following statements about Rashtriya Ispat Nigam Ltd (RINL) as per the January 2025 revival plan release: 1. RINL is a Schedule-A CPSE wholly owned by the Government of India. 2. Its plant has an installed capacity of 7.3 Mtpa of liquid steel. 3. The ₹1,140 crore working capital loan is to be converted into 7% non-cumulative preference shares redeemable after 10 years. Which of the statements given above is/are correct?
Show answer
Correct answer: C — 1, 2 and 3
PIB (Steel): RINL is a Schedule-A CPSE with 100% Government ownership, its plant has 7.3 Mtpa liquid steel capacity, and the ₹1,140 crore loan converts into 7% non-cumulative preference share capital redeemable after 10 years.