The Indian government has stepped in to support Rashtriya Ispat Nigam Limited (RINL) with an initial bailout package of Rs.1,640 crore to prevent its closure amid severe financial struggles.
RINL, India's largest shore-based steel producer and the corporate entity of the Vizag Steel Plant, has been facing mounting debts, with accumulated losses impacting its operations and sustainability.
The bailout aims to ensure RINL can meet immediate operational needs and address financial obligations while the government assesses long-term restructuring and revitalization strategies.
Officials stated that the move is crucial to safeguard jobs and maintain steel production, given RINL’s significant contribution to India's steel industry.
Additionally, discussions are ongoing regarding strategic disinvestment to attract private investment, which may provide a sustainable path forward for RINL.
The bailout highlights the government's commitment to supporting public sector enterprises vital to the nation’s industrial base.
