Centre plans Rs 8,097 crore equity infusion in RINL

The financial position of Vizag Steel remains fragile. In 2024–25, the Centre extended timely support of ₹1,640 crore, comprising ₹500 crore in equity and ₹1,140 crore as a working capital loan. This assistance enabled the recommissioning of the second blast furnace in October 2024.

Momentum continued after the government approved a comprehensive revival package of ₹11,440 crore in January 2025, including ₹10,300 crore in equity and the conversion of the ₹1,140 crore loan into 7% redeemable preference shares.

These measures helped improve production levels and resulted in positive Ebitda in the final quarter of the year. The third blast furnace was recommissioned in June 2025, further strengthening RINL’s long-term viability.

Recent improvement in financial position

During 2024–25, the company reported a marked improvement in its financial position. Its opening net worth as of April 1, 2024, stood at negative ₹4,538 crore. With equity infusions of ₹7,283 crore during FY25, and after accounting for a comprehensive loss of ₹1,607 crore, the net worth turned positive at ₹1,137.47 crore as of March 31, 2025. Turnover stood at ₹18,288 crore.

RINL currently has a steelmaking capacity of 7 million tonne (MT), which can be expanded to 17 MT with fresh investment. It also has a land bank of 19,000 acres, including a 6,000-acre green belt. Like Neelachal Ispat Nigam Limited (NINL), acquired by the Tata Group in January 2022, privatisation of RINL is seen as crucial for reviving the plant’s fortunes and safeguarding employee interests.