Sun Nov 03 07:57:44 UTC 2024: ## Government Injects ₹1,650 Crore into Struggling RINL, Amidst Privatisation Plans

**New Delhi, November 3, 2024:** The Indian government has injected ₹1,650 crore into Rashtriya Ispat Nigam Limited (RINL), the state-owned steel manufacturer facing significant operational and financial challenges.

According to an official document, the government has provided ₹500 crore in equity and a ₹1,140 crore working capital loan to RINL in recent months. The Ministry of Steel is also actively working with the Ministry of Finance to keep RINL afloat, while awaiting a sustainability report from SBICAPS, a subsidiary of the State Bank of India.

RINL, which owns a 7.5 million tonne steel plant in Visakhapatnam, Andhra Pradesh, has been struggling with financial losses, leading to the closure of two out of its three blast furnaces. The company’s overall dues have exceeded ₹35,000 crore.

In January 2021, the Cabinet Committee on Economic Affairs (CCEA) approved the 100% disinvestment of the government’s stake in RINL through privatization. This move has been met with resistance from workers’ unions who argue that the company’s lack of captive iron ore mines has contributed significantly to its current predicament.

“RINL never had captive mines, while other steel makers have the benefit of captive mines, which helps them keep their raw material costs low,” said J. Ayodhya Ram, a leader of a union protesting against privatization. “We have always bought iron ore at market price, adding transportation cost to it.”

The government’s continued financial support for RINL, despite its plans for privatization, suggests a commitment to stabilizing the company and ensuring a smooth transition during the disinvestment process.

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