Privatisation-bound Rashtriya Ispat Nigam (RINL) will sell about 14 acres of land in Visakhapatnam to monetise non-core assets to raise working capital.
RINL owns non-contiguous land plots/ blocks measuring 13.89 acres at HB Colony-Maddilapalem, Auto Nagar, Pedagantyada in Visakhapatnam, Andhra Pradesh. This property is divided into 111 plots and 19 blocks. Each block and plot will be auctioned separately.
Interested bidders have to deposit Earnest Money Deposits (EMDs) by March 5 and auctions of the plots will be held on March 14-15, officials said.
Meanwhile, the Centre is readying a plan to structure RINL (Vizag Steel) for privatisation. Given the amount of preparatory work needed, the strategic disinvestment of the plant could take two to three years from now.
With both general elections and Andhra Pradesh Assembly elections due in April-May, the process could meaningfully begin only after the elections are over.
Like Neelachal Ispat Nigam (NINL), privatisation of RINL is crucial to reviving the fortunes of the plant and protecting the interest of the employees, sources have said.
In January 2022, Tata group bought the Odisha-based NINL, jointly owned by four central and two Odisha government public sector undertakings for Rs 12,100 crore. Besides reviving the plant and protecting jobs of employees, the Tatas are expanding the capacity of the plant with fresh investments.
Visakhapatnam-based RINL incurred a loss of Rs 3,049 crore in FY23 and its plant is running at a around 5MT as against 7MT capacity. The cost of production of the plant is also not competitive. The company is facing a severe working capital crunch.