New Delhi: The Central Government has provided financial assistance of Rs 1,650 crore to Rashtriya Ispat Nigam Limited (RINL). This help has been given to overcome the financial and operational crises of the company. The company's steel production plant located in Visakhapatnam, Andhra Pradesh has a capacity of 75 lakh tonnes, but in recent years it has been facing various problems.

The Union Steel Ministry has taken several important steps to support this company. On September 19, 2024, the government provided equity support of Rs 500 crore to RINL, while on September 27, it was provided a working capital loan of Rs 1,140 crore. The Steel Ministry said in a note that the government is taking several measures to keep RINL in working condition. Keeping

In mind this crisis situation, the government has also ordered SBICaps, a subsidiary of the State Bank of India, to prepare a report on the financial position of RINL. This report mentions the serious financial challenges of RINL, and discussions are being held with the Finance Ministry to resolve them.

One of the problems of RINL is the closure of two of its three blast furnaces by 2028. Due to this situation, the total debt of the company has increased to Rs 35 thousand crore.

It is worth noting that in January 2021, the Cabinet Committee on Economic Affairs gave in-principle approval for 100 percent disinvestment of government stake in RINL, but this decision has been opposed by labor unions. They say that RINL does not have its own iron ore mines, due to which the company is facing the current crises.