Government Plans To Revive RINL With Restructuring Plan, Mulls Stake Sale—NDTV Profit Exclusive
Recent government measures have infused Rs 1,650 crore into RINL, with discussions ongoing for a new restructuring package aimed at improving the company's working capital.
The government is taking steps towards the revival of Rashtriya Ispat Nigam Ltd., and among the options being considered is a possible sale of stake, according to people with knowledge of the matter. RINL, also known as Vizag Steel, is wholly owned by the Government of India.
The government is formulating a restructuring plan to ensure RINL's survival in the business, the people told NDTV Profit on Tuesday. The state-run entity is also in discussions with banks for a new restructuring package to enhance working capital, they added.
Notably, RINL has been reeling under a financial crisis, with its debt piling up to Rs 18,000 crore.
The Centre has infused funds amounting to Rs 1,650 crore into RINL in the last two months, the officials said. Out of this amount, Rs 500 crore is in the form of equity and the rest as working capital, they said.
(This is a developing story.)
