Visakhapatnam: The government has sanctioned a Rs 11,440 crore revival package for Rashtriya Ispat Nigam Limited (RINL), operator of the Visakhapatnam Steel Plant (VSP). The package includes Rs 10,300 crore in fresh equity and converting Rs 1,140 crore of loans into preference shares, aiming to restart operations and achieve full production. Two blast furnaces are set to begin by January 2025, with a third operational by August 2025, boosting steel output and securing livelihoods.
Global steel production has risen significantly, with India contributing 7.4% of global output in 2023. While India’s crude steel production reached a record 144.3 million tonnes in 2023-24, RINL has struggled due to high raw material costs and the absence of captive iron ore mines.
Despite achieving Rs 22,778 crore in turnover in 2022-23, RINL faced a 19% decline from its 2021-22 peak. Raw material costs, particularly iron ore and coal, account for 60% of total expenditure, significantly impacting profitability.
The revival package provides a lifeline, but long-term sustainability depends on addressing structural issues, such as securing dedicated raw material sources. This move not only supports the National Steel Policy but also strengthens India’s position in the global steel industry.
, operator of the Visakhapatnam Steel Plant (VSP).){kind=link}