Major Financial Boost for Vizag Steel Plant

As promised by the NDA coalition in Andhra Pradesh led by Chief Minister Chandrababu Naidu before the elections, the central government is putting in all possible efforts to stop the disinvestment process of the prestigious Rashtriya Ispat Nigam Limited (RINL) referred as ‘ Visakhapatnam Steel Plant.

Amid speculations that the plant will be shut down due to a lack of funds and a dearth of raw materials, the BJP government at the centre continues to extend monetary support at frequent intervals to revive the operations and bail out its financial crunch.

As per the latest update, the Ministry of Steel has infused around 1,650 crore in the State-owned Rashtriya Ispat Nigam Limited and various measures are being taken to offset the losses and continue the plant as a going concern.

It is a known fact that the government has released 500 crores towards equity and a working capital loan of 1,140 crores in September this year when the plant was on the verge of total shut down. Now, the allotment of 1,650 Crore appears to be another step towards stopping it from disinvestment. Further, it has been revealed that SBICAPS, a wholly-owned subsidiary of the State Bank of India (SBI), is preparing a report on the sustainability of RINL.

Despite repeated assurances from the present government in Andhra Pradesh and the Union Minister for Steel, there have been rumours that the plant will be privatized and the workers continue to protest against the administration. But, the centre seems to be honouring the promises of Chandrababu Naidu and other NDA leaders in going back on its earlier decision towards 100% disinvestment taken in 2021 by the cabinet committee on economic affairs.