VIJAYAWADA: The Central government has announced a financial package of Rs 11,440 crore for the revival of the Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Limited). The announcement was made by Union Minister of Information and Broadcasting Ashwini Vaishnaw on Friday and was later confirmed during a Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi.
Visakhapatnam Steel Plant is a Schedule-A Central Public Sector Enterprise (CPSE) under the Ministry of Steel, with a current installed capacity of 7.3 million tonnes per annum (MTPA). The revival package includes an equity infusion of Rs 10,300 crore and the conversion of Rs 1,140 crore of working capital loans into 7% non-cumulative preference share capital, redeemable after 10 years, to ensure RINL remains a going concern.
The equity support will allow RINL to address operational challenges, raise working capital, and gradually achieve full production capacity of 7.3 MTPA. It is expected to stabilise the Indian steel market, protect livelihoods, and enable the plant to operate at full capacity, contributing significantly to the economy.
Describing it as the largest package ever for RINL, Vaishnaw highlighted the strategic importance of VSP, the only offshore steel plant in the country under government ownership. He noted that the package would enable the activation of two blast furnaces by January 2025, with all three blast furnaces set to be operational by August 2025, significantly increasing production.
In a post on X (formerly Twitter), Prime Minister Modi remarked that the Visakhapatnam Steel Plant holds a special place in the hearts of the people of Andhra Pradesh.
“During yesterday’s Cabinet meeting, it was decided to provide equity support of over Rs 10,000 crore for the plant. This has been done understanding the importance of the steel sector in building an Aatmanirbhar Bharat,” he said.
