Rashtriya Ispat Nigam Limited (RINL) is struggling with heavy losses and rising debt, prompting the government to step in with financial support. The company reported a Rs 3,943 crore loss between April and December 2024, and its total liabilities have reached around Rs 39,000 crore as of December 31, 2024. To help RINL recover, the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, approved a Rs 11,440 crore revival plan last month.
As part of this plan, the government has agreed to provide Rs 10,300 crore as equity capital to RINL, but only if the company increases its production capacity from 63% to 92.5% by the third quarter of the next financial year. Minister of State for Steel, Bhupathiraju Srinivasa Varma, shared this condition in the Lok Sabha, stressing the need for the company to improve its performance and efficiency.
The revival effort is aimed at turning RINL into a profitable enterprise again. With government backing and a push for higher production, the steel manufacturer hopes to overcome its financial struggles and strengthen its position in the industry.
