The Union Cabinet has approved a ₹11,440 crore revival plan for Rashtriya Ispat Nigam Limited (RINL), the state-owned company operating the Visakhapatnam Steel Plant. The announcement came after a Cabinet meeting chaired by Prime Minister Narendra Modi.
In a post on X, PM Modi said, “The Visakhapatnam Steel Plant has a special place in the hearts and minds 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”.
Union Minister Ashwini Vaishnaw detailed the plan, which includes an equity infusion of ₹10,300 crore and the conversion of ₹1,140 crore in working capital loans into preferred share capital.
The announcement drew responses from various political leaders. Andhra Pradesh Deputy Chief Minister Pawan Kalyan expressed gratitude to the Prime Minister and acknowledged the contributions of those involved in the plant’s establishment. He affirmed the state’s commitment to ensuring the plant’s operational success.
Finance Minister Nirmala Sitharaman and Union Steel Minister H. D. Kumaraswamy were also recognized for their role in facilitating the package. Deputy Chief Minister Kalyan said the state government, under Chief Minister Chandrababu Naidu, would work to strengthen the plant’s operations and create opportunities for stakeholders.
Civil Aviation Minister K. Ram Mohan Naidu addressed concerns about privatization, reiterating the government’s pledge to retain the plant’s public sector status. He called the package a step towards advancing Andhra Pradesh’s economic growth.
Minister of State for Rural Development and Communications, Dr. Chandra Sekhar Pemmasani, noted the package’s potential impact on the industrial sector, emphasizing its role in fostering development in the region.
