The Indian government has infused funding amounting to $196.11 million into state-run steel producer Rashtriya Ispat Nigam Limited (RINL) to tide it over its operational and financial issues, government sources said on Tuesday, November 5.
The government had already infused $60 million towards the equity of RINL as well as a working capital of $136 million in September this year, to maintain its status as a ‘going concern’ as per audit rules and standards.
The government has also appointed SBICaps, a merchant banking arm of the State Bank of India (SBI), to prepare a sustainability report for RINL, which operates a 7.3 million mt per year capacity steel mill in the southern port town of Vishakhapatnam.
RINL has been facing a crippling fund shortage and has been forced to shut down two of its three BFs, with the third one just about maintaining a minimal level of operations, with the company burdened with aggregate outstanding dues of $4.16 billion.