MUMBAI: Government is considering merger of RINL with another state-owned steel company SAIL as one of the options to ensure survival of RINL’s plant and resolve the financial and operational issues being faced by the Andhra Pradesh-based steel maker, sources said.
To provide capital for continuity of operations at the RINL’s steel plant, plans like sale of land parcel to NMDC and bank loans are also being worked out, they said.The DFS secretary, steel secretary and top officials of public sector lender SBI also held a meeting recently over the RINL issue. SBI has significant loan exposure to RINL.
“Government wants to provide a permanent solution to the issue. One of the options being discussed is the merger of RINL with SAIL,” the sources said. Rashtriya Ispat Nigam (RINL), under the ministry of steel, owns and operates a 7.5 million tonnes plant at Visakhapatnam in Andhra Pradesh. It holds the distinction of being India’s first shorebased integrated steel plant.
SAIL (Steel Authority of India) also comes under the steel ministry.
Sources further said that arranging capital for operations is also being considered, besides other measures like having talks with lenders for financial assistance and monetising assets through sale of a land parcel of 1,500-2,000 acres to NMDC for a pellet plant.
According a steel ministry document, RINL is in serious financial trouble.
