Govt considering RINL merger with SAIL to ensure survival of Vizag plant

The government is considering merger of RINL with another state-owned steel company SAIL as one of the options to ensure survival of RINL's plant and resolve the financial and operational issues being faced by the Andhra Pradesh-based steel maker, sources said.

To provide capital for continuity of operations at the RINL's steel plant, plans like sale of land parcel to NMDC and bank loans are also being worked out, they told PTI.

The DFS secretary, steel secretary and top officials of public sector lender SBI also held a meeting recently over the RINL issue. SBI has significant loan exposure to RINL.

"The government wants to provide a permanent solution to the issue. One of the options being discussed is the merger of RINL with SAIL," the sources said.

Rashtriya Ispat Nigam Ltd (RINL), under the Ministry of Steel, owns and operates a 7.5 million tonnes plant at Visakhapatnam in Andhra Pradesh. It holds the distinction of being India's first shore-based integrated steel plant.

SAIL