MUMBAI: Government is contemplating merger of RINL with one other state-owned metal firm SAIL as one of many choices to make sure survival of RINL’s plant and resolve the monetary and operational points being confronted by the Andhra Pradesh-based metal maker, sources mentioned.
To present capital for continuity of operations on the RINL’s metal plant, plans like sale of land parcel to NMDC and financial institution loans are additionally being labored out, they mentioned.The DFS secretary, metal secretary and high officers of public sector lender SBI additionally held a gathering not too long ago over the RINL subject. SBI has vital mortgage publicity to RINL.
“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 mentioned. Rashtriya Ispat Nigam (RINL), underneath the ministry of metal, owns and operates a 7.5 million tonnes plant at Visakhapatnam in Andhra Pradesh. It holds the excellence of being India’s first shorebased built-in metal plant.
SAIL (Steel Authority of India) additionally comes underneath the metal ministry.
Sources additional mentioned that arranging capital for operations can be being thought-about, apart from different measures like having talks with lenders for monetary help and monetising belongings by means of sale of a land parcel of 1,500-2,000 acres to NMDC for a pellet plant.
According a metal ministry doc, RINL is in severe monetary hassle.
