The privatisation of the Rashtriya Ispat Nigam Ltd., also known as the Visakhapatnam Steel Plant, has been one of the burning topics in Andhra Pradesh for quite some time. The employees of the steel plant and many others opposed the idea of privatising it.
According to the latest reports, the government of India is planning to merge RINL with another state-owned steel company, Steel Authority of India Ltd (SAIL).
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The central government reportedly believes that it is the only way to resolve the financial and operational issues at the Vizag Steel Plant.
As per sources, to provide capital for ongoing operations at RINL, the government is planning to sell land to NMDC and secure bank loans.
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Along with that, the government is planning to take other measures, including talks with lenders for financial support and raising funds by selling 1500-2000 acres of land to NMDC for a pellet plant.
According to a report by the steel ministry, Vizag Steel Plant is facing severe financial difficulties, operating at minimal capacity, and incurring continuous losses.
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The company’s debts have exceeded Rs 35,000 crore, putting it on the verge of being labelled a non-performing asset by banks.
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