The Indian government is planning a new round of equity financing in the amount of about $854 million to the state-owned steel producer Rashtriya Ispat Nigam Limited (RINL) to support the company's operations, which are experiencing financial difficulties, government sources said on Thursday, April 30.
This will mark the second round of bailouts after the government provided $174 million to RINL in 2024-25 to resume its operations. The last financing was in the form of equity in the amount of $53 million and the balance in the form of a working capital loan.
The injection of the previous tranche of financing allowed RINL to restart two of the three blast furnaces at its plant located in Visakhapatnam in southern India, with a typical capacity of 7.3 million tons per year.
The latest round of funds is aimed at helping RINL achieve financial sustainability in maintaining operations and achieve long-term viability, government sources said.
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