Govt Investment in RINL: Government company Rashtriya Ispat Nigam Limited (RINL) is facing financial and operational problems. In such a situation, the company is on the verge of closure. To keep the company afloat, the government has invested about Rs 1640 crore in it. Information related to this has been found in an official document. The Ministry of Steel said in a note that the government is taking several measures to keep RINL afloat.

A total loan of Rs 1140 crore was given to the company.

According to the document, 'In this regard, the Government of India has infused Rs 500 crore as equity in the company on September 19, 2024. Apart from this, on September 27, 2024, the company was given a loan of Rs 1140 crore to meet the working capital requirements. ' It said that SBI Capital, a subsidiary of SBI, has been entrusted with the task of preparing a report on the viability of RINL.

The report said, "RINL is in serious financial crisis and the Ministry of Steel... in consultation with the Ministry of Finance, is taking various steps to keep RINL afloat. RINL, which comes under the Ministry of Steel, is a steel manufacturing company
. It has a 7.5 million tonne plant in Visakhapatnam, Andhra Pradesh. The company is facing serious financial and operational problems. The total outstanding of RINL has exceeded Rs 35,000 crore.

Privatisation decision opposed by trade unions
In January 2021, the Cabinet Committee on Economic Affairs (CCEA) gave its 'in-principle' approval for 100 percent disinvestment of government stake in RINL through strategic disinvestment. It is also known as Visakhapatnam Steel Plant or Vizag Steel. Trade unions had opposed the government's decision to privatize the company. They said that RINL does not have its own iron ore mine, due to which it is facing the current crisis.

J Ayodhya Ram, a union leader opposing RINL's privatization, said, "RINL never had captive mines. All other primary steelmakers who make steel through blast furnaces get the benefit of captive mines. This helps in the cost of raw materials. We have always bought iron ore at market price. You can also add transportation cost to it."