Exclusive | Govt may finalise RINL steel plant revival plan within a month: Steel Secretary

The Indian government is actively discussing a proposal to revive the financially struggling Rashtriya Ispat Nigam Ltd (RINL) Steel Plant, with a final decision expected within a month. Steel Secretary Sandeep Poundrik, in an exclusive conversation with CNBC-TV18, revealed that the discussions revolve around addressing RINL’s significant liabilities while ensuring that the steelmaker contributes a portion of the funds independently.

RINL, which operates a 7.5 million tonne (MT) integrated steel plant in Visakhapatnam, Andhra Pradesh, has total liabilities of approximately ₹35,000 crore. However, Poundrik clarified that the government will not absorb the entire burden, as RINL is expected to shoulder part of the liabilities through its own resources.

“We have taken a call on reviving the RINL Steel Plant,” Poundrik said, adding that the government should be able to make a decision on the proposal within a month’s time.

RINL, popularly known as the Vizag Steel Plant, has been a critical player in India’s steel production landscape since its establishment. However, in recent years, the plant has been battling financial challenges due to mounting debt, operational hurdles, and global market headwinds.

Steel Minister HD Kumaraswamy’s discussions with PMO

Union Minister of Steel HD Kumaraswamy has recently engaged in discussions with the Prime Minister’s Office (PMO) to formulate a comprehensive strategy for revitalising the steel plant.

RINL, commonly known as the Vizag Steel Plant, has been a cornerstone of India’s steel production since its inception. Despite its historical significance, the plant has faced severe financial strain in recent years due to escalating debt, operational inefficiencies, and unfavorable global market conditions.

NMDC-KIOCL merger and the issue of Karnataka levies

The Steel Secretary also touched on two other critical issues impacting the sector. The first pertains to the NMDC-KIOCL merger, with the ministry submitting a proposal to the Department of Investment and Public Asset Management (DIPAM) for merging the National Mineral Development Corporation (NMDC) with KIOCL. The decision now rests with the Finance Ministry.

Second, the Ministry has raised concerns over the adverse impact of Karnataka’s levies on iron ore mining, flagging the issue with the Ministry of Mines. The Steel Ministry has urged for interventions to mitigate the high costs imposed by additional taxes on the mining sector.

The development comes amidst reports that the State Bank of India had categorised RINL under the Special Mention Account 1 (SMA-1) category during the second quarter of FY25, signaling the need for urgent measures to address the plant’s financial troubles.

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