Sail and RINL Merger: A Strategic Move by the Steel Ministry
Steel Ministry's Merger Proposal for Debt-Stricken RINL
The Steel Ministry is actively working towards the merger of Rashtriya Ispat Nigam (RINL) with Steel Authority of India Ltd (SAIL). This development comes as RINL faces severe financial health issues, with losses amounting to ₹2,859 crore in 2022-23 and a staggering net debt of ₹20,400 crore.
Upcoming Changes in RINL Management
- Outgoing RINL chairman Atul Bhatt has opted for leave until retirement amid deteriorating conditions.
- SAIL is expected to assist RINL in managing debts and operations.
- Privatization has been ruled out by Union Steel Minister HD Kumaraswamy, aiming instead for government support.
Plans to Address Financial Strains
Although RINL considered selling off non-core land to cover interest payments, officials stress that this strategy will not effectively solve its underlying problems. Further, India Ratings recently downgraded RINL's bank facility ratings, underscoring the urgency of the situation.
Conclusion of Merger Discussions
The proposed merger represents a significant move by the Steel Ministry in an attempt to stabilize RINL amid its ongoing struggles. As the situation develops, SAIL's leadership could be crucial to ensuring the long-term viability of RINL.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.