PSU steel manufacturer Rashtriya Ispat Nigam (RINL) has identified non-core land assets worth Rs 200 crore for monetisation in financial year 2025–26 (FY26), as part of its ongoing effort to raise funds amid financial stress, following a successful land monetisation worth Rs 248 crore during FY25, one government official familiar with the developments told Moneycontrol.
“Assets in RINL are identified and referred for monetisation. We have done asset monetisation of land parcels worth approximately Rs 248 crore in FY25. So for FY26, identified land assets worth Rs 200 crore for asset monetisation to raise funds,” the official said.
The proceeds from these asset sales will go directly to RINL and not to the Centre. “These funds from non-core asset monetisation will go to the PSU only, not to the Centre,” the official added.
This fresh monetisation plan is part of a larger strategy to help keep the ailing state-owned steel producer operational. In January 2025, the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister had approved a revival package for RINL worth Rs 11,440 crore, which included an equity infusion of Rs 10,300 crore and conversion of Rs 1,140 crore in working capital loans into 7 percent non-cumulative preference share capital, redeemable after 10 years.
“Reviving RINL is vital for ensuring long-term stability in India’s steel sector. It will enable the company to gradually ramp up to full production capacity, which is crucial for sustaining domestic steel supply, supporting industrial growth,” the official told Moneycontrol.
RINL, a central public sector enterprise under the Ministry of Steel, operates the Visakhapatnam Steel Plant (VSP) - the only shore-based integrated steel plant in the public sector, in Andhra Pradesh. The plant has an installed capacity of 7.3 million tonnes per annum (MTPA) of liquid steel.
“RINL has been facing severe financial constraints. It has released partial salaries to its employees for the months of September, October and November 2024. The equity infusion of RINL has been done by the Government of India to keep it as a going concern,” Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma had said in a written reply in the Lok Sabha in February.
During the first nine months of FY25 (April–December 2024), RINL produced 2.68 Mt of hot metal and 2.37 Mt of saleable steel. However, it reported a pre-tax loss of Rs 3,943.43 crore during the same period, on a total income of Rs 12,615.03 crore. Its total liabilities stood at approximately Rs 38,965 crore as on December 31, 2024.
Steel Sector's Pivotal Role
Steel consumption is a key indicator of a nation’s economic progress, hence the financial health of public sector steel companies like RINL holds strategic importance. To bolster domestic steel production, the government had introduced the National Steel Policy (NSP), 2017 which set an ambitious goal of crude steel production capacity of 300 million tonnes (MT) and actual production of 255 MT by 2030-31. The policy also aims to promote domestic production of high-grade automotive, electrical and special-purpose steel to meet strategic needs and reduce import dependence.
At the India Steel Summit held in April 2025, Prime Minister Modi underlined the critical role of the steel sector in propelling India’s economic ambitions. “Steel has played a role like a skeleton in the modern economies of the world. Be it skyscrapers or shipping, highways or high-speed rail, smart cities or industrial corridors - behind every success story lies the strength of steel,” said PM Modi, adding that the sector is vital for India to reach the $5 trillion economy target. He also underscored that India has now become “the second-largest steel producer in the world”.
Green Transition
Amidst growing global emphasis on sustainable industrial practices, the Ministry of Steel has been promoting the transition to greener technologies through its "Greening the Steel Sector in India" initiative. Green steel - produced using low-emission methods such as green hydrogen or electric arc furnaces powered by renewable energy - is being increasingly adopted in shipbuilding and other key industries. Ship recycling, too, has emerged as a significant source of sustainable scrap steel, aiding circular economy efforts.
RINL has demonstrated leadership in energy efficiency, having bagged the National Energy Leader Award from the Confederation of Indian Industry - Green Business Centre (CII-GBC) in September 2024, recognising RINL’s energy efficiency and commitment to sustainable operations.
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