NEW DELHI: The Centre has withdrawn its decision to privatize Rashtriya Ispat Nigam Ltd that runs Visakhapatnam Steel Plant (VSP), India’s first shore-based integrated steel facility with 7.5 million tonnes capacity.
Instead of disinvestment, the revival of RINL is the focus of the government. During the last two months, Rs1,650 crore has been infused into the company in the form of Rs500 crore of equity and the rest as working capital.
RINL is holding talks with banks for a restructuring package that will help strengthen the financial muscle of the corporation.
In order to ensure the long-term survival of the company, an initiative to restructure the company with a government-backed plan is being floated in the wake of uncertainties in the future of the steel sector.
