Indian Government Likely to Approve Sale of Stake in RINL
According to media reports, Indian government may soon take up the proposal for approval of strategic disinvestment of Vizag based steel public sector unit
According to media reports, Indian government may soon take up the proposal for approval of strategic disinvestment of Vizag based steel public sector unit Rashtriya Ispat Nigam Limited. Indian government had been making efforts to go for a strategic sale of the steel plant for 2-3 years but the efforts did not make much headway. With steel prices improving and demand expected to pick up, there is a view that this is a right time to go for a strategic sale and expectations are that there is a strong interest for the plant.
Indian government currently holds 100% stake in 6.3 million tonnes per annum steel capacity Rashtriya Ispat Nigam Limited that mainly produces long products used in construction sector. It has embarked on an expansion plan to enhance capacity to 7.3 million tonnes per annum. RINL has over 17,000 permanent employees. RINL recorded INR 16,618 crore revenues in 2017-18, INR 20,844 crore in 2018-19 and INR 15,920 crore in 2019-20. RINL suffered a loss of INR 1,369 crore in 2017-18 but was able to recover briefly with a net profit of INR 97 crore in 2018-19. However, again in 2019-20, it suffered INR 3,910-crore loss in 2019-20.