https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Is the Govt Considering a Merger of RINL with SAIL & NMDC After Approving Rs. 11,440 Crore Infusion?

This decision aims to stabilize the company’s operations, reduce its debt burden, and secure its position in the highly competitive steel market.
Indian Masterminds Stories

In a major move to address the financial challenges faced by Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, the Indian government has approved an equity infusion of Rs. 11,440 crore. This decision aims to stabilize the company’s operations, reduce its debt burden, and secure its position in the highly competitive steel market.

RINL has been grappling with significant losses, rising debt, and inefficiencies in its operations. As of March 31, 2024, the company’s net worth was negative, standing at Rs. (-)4538 crore. With mounting liabilities and exhausted borrowing capacity, RINL’s financial condition has become precarious, making the government’s intervention essential to avoid its collapse.

In response to concerns raised in the Rajya Sabha, Bhupathiraju Srinivasa Varma, Minister of State in the Steel Ministry, reiterated that the government periodically reviews public sector undertakings (PSUs) and takes necessary steps to support them. RINL, along with Steel Authority of India Limited (SAIL) and NMDC Steel Ltd (NSL), are the three major public-sector steel manufacturers in India.

Regarding the possibility of merging these entities, Minister Varma stated that, at present, there are no plans to merge SAIL, NMDC Steel, and RINL. However, in September 2024, the Steel Ministry announced that it is actively considering the merger of RINL with SAIL, as part of efforts to improve operational efficiency and financial stability.

RINL, located in Visakhapatnam, Andhra Pradesh, is India’s first shore-based integrated steel plant. Despite its vital role in domestic and industrial steel production, the company has struggled to meet its financial obligations, facing stiff competition due to fluctuating steel prices and rising operational costs.

The Rs. 11,440 crore equity infusion is a critical step in revitalizing Vizag Steel, allowing it to service its debts, regain financial stability, and remain competitive. With the infusion, the company is expected to overcome its financial crises and continue its role in India’s steel sector.

The Indian government’s decision highlights its commitment to ensuring the sustainability of key public-sector enterprises and their continued contribution to India’s economic growth.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Anukriti Sharma IPS resized
Who is IPS Anukriti Sharma? The Inspiring Officer Who Lit Up Lives with Sambhal Police’s Heartwarming Diwali Mission
PESB
PESB Opens Applications for Director Posts in NHPC and CONCOR; Apply by November 11
CBI
2 IPS Officers Appointed as SPs in CBI on 5-Year Central Deputation – Know Their Profiles
WhatsApp Image 2025-10-21 at 2.07
Govardhan Puja: CM Mohan Yadav Performs Puja at Tilkeshwar Temple, Reiterates Commitment to Farmers & Cow Welfare
Pushkar Singh Dhami Cow
Govardhan Puja in Uttarakhand: CM Pushkar Singh Dhami Highlights Cow Conservation as Key to Culture and Self-Reliance
Gujarat News
From Temple to Policy: Gujarat CM’s New Year Message Blends Tradition with Self-Reliant Growth
Vishnu Deo Sai CM
Chhattisgarh Lights Up with Development: CM Vishnu Deo Sai Celebrates Diwali at Gurudham, Announces Rs. 1.58 Crore Revamp Plan
Lucknow parks development
Lucknow’s Green Makeover: LDA to Revamp 50 Parks with Rs. 150 Crore Urban Eco-Development Plan
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-19 at 12.23
UPSC Journey Should Be Enjoyable, Not Cumbersome
WhatsApp Image 2025-10-16 at 15.16
The Many Facets of Former IRS Officer and Author, Giselle Mehta | Video Interview
IDES Saquib Alam
Beyond IAS and IPS: The Inspiring Work of an IDES officer | Video Interview 
ADVERTISEMENT
UPSC Stories
IAS Rupal Rana UPSC
How Rupal Rana Cracked UPSC CSE 2023 with AIR 26 After Four Attempts
UPSC Topper Rupal Rana secured AIR 26 in 2023 after four attempts. Learn her preparation strategy, booklist,...
Ankita Parashar RAS 2023
4 Attempts, 1 Dream, 0 Excuses: Meet RAS Topper Ankita Parashar, Who Fulfilled a Daughter’s Promise & Secured Rank 2 | Exclusive Interview
Ankita Parashar, a teacher-turned-officer from Pushkar, fulfilled her late father’s dream by securing...
Kushal Chaudhary RAS
From Lab Assistant’s Grit to Rajasthan Topper: How Kushal Chaudhary Topped RAS 2023 with Self-Study | Preparation, Strategy & Interview
Kushal Chaudhary, a farmer’s son and lab assistant from Ajmer, topped RAS 2023 through self-study, overcoming...
Social Media
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Anukriti Sharma IPS resized
Who is IPS Anukriti Sharma? The Inspiring Officer Who Lit Up Lives with Sambhal Police’s Heartwarming Diwali Mission
PESB
PESB Opens Applications for Director Posts in NHPC and CONCOR; Apply by November 11
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-19 at 12.23
WhatsApp Image 2025-10-16 at 15.16
IDES Saquib Alam
ADVERTISEMENT
ADVERTISEMENT