Visakhapatnam: There is a debate over the Central government providing financial assistance to the Rashtriya Ispat Nigam Limited (RINL) to the tune of Rs 10,000 crore. According to reliable sources, a decision towards this will be taken by the Union cabinet.
In what seems to be a major relief to the Rashtriya Ispat Nigam Limited (RINL) that has been grappling with financial distress, the Union government decided to revive the plant with over Rs 10,000 crore plan. For a long time, the RINL has been suffering from mounting debts and operational setbacks.
The Central government has already provided financial aid of Rs 15,000 crore to the Karnataka Visvesvaraya Iron and Steel Plant (VISL), which has a production capacity of 0.7 metric tons. “The Centre has to consider how much Visakhapatnam Steel Plant is required, which has ten times more production capacity compared to VISL. However, all these are only temporary relief. A permanent solution for the problem is to merge the RINL with SAIL,” stressed Visakha Ukku Parirakshana Porata Committee convener J Ayodhya Ramu. Similarly, tax holiday should be announced for four years, he added.
As assured, Visakhapatnam Metropolitan Region Development Authority chairperson MV Pranav Gopal said, the NDA government is keeping its promise to extend all its support to the RINL and help it overcome from losses. “The efforts of Chief Minister N Chandrababu Naidu, Deputy Chief Minister K Pawan Kalyan and HRD Minister Nara Lokesh are behind the package that comes as part of the Centre’s revival plan,” he stated.
Terming that the financial assistance is a welcome move, INTUC leader, Neerukonda Ramachandra Rao opined that if VSP is allocated its own captive mines, such financial assistance will not be required in future. There is no doubt that the RINL will be recognised as the best steel plant in the country and earn huge profits, he mentioned.
However, the proposal to revive the plant by infusing Rs 10,300 crore is on the Union Cabinet’s list and it is likely to be made official on January 17 (Friday). At a time when the plant is going through severe financial stress, the revival plan which is expected to be announced at the cabinet briefing provides the much-needed relief to the RINL.
