Cabinet to clear sale of Rashtriya Ispat Nigam (RINL) soon

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January 26, 2021 1:30 AM

Another PSU, NMDC is building a 3-mtpa steel-making facility at Nagarnar in Chhattisgarh, but the Cabinet has already accorded its approval for privatisation of the upcoming steel plant.

However, again in 2019-20, it suffered Rs 3,910-crore loss in 2019-20.However, again in 2019-20, it suffered Rs 3,910-crore loss in 2019-20.

The cabinet may soon take up the proposal for approval of strategic disinvestment of Rashtriya Ispat Nigam (RINL), the Vizag-based steel public sector unit (PSU) having 6.3 million tonnes per annum (mtpa) steel-making capacity, sources said.

The government currently holds 100% stake in the company that mainly produces long products used in construction sector. Steel Authority of India (SAIL) is the other steel-making PSU.

Another PSU, NMDC is building a 3-mtpa steel-making facility at Nagarnar in Chhattisgarh, but the Cabinet has already accorded its approval for privatisation of the upcoming steel plant.

RINL has over 17,000 permanent employees. It has embarked on an expansion plan to enhance capacity to 7.3 mtpa.

RINL suffered a loss of Rs 1,369 crore in 2017-18; but was able to recover briefly with a net profit of Rs 97 crore in 2018-19.

However, again in 2019-20, it suffered Rs 3,910-crore loss in 2019-20.

The company recorded Rs 16,618-crore revenue in 2017-18; Rs 20,844 crore in 2018-19 and Rs 15,920 crore in 2019-20.

According to a September 2020, report of the Parliamentary standing committee for coal and steel, RINL was unable to tide over its financial crises, despite many efforts.

“The committee have been informed that RINL has also engaged a technical consultant to suggest ways to contain losses. The committee desires that RINL to take appropriate measures to remove all the bottlenecks in order to contain its losses,” the report said.

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