India’s state-run steelmaker Rashtriya Ispat Nigam Limited (RINL) must achieve and consistently maintain at least 92.5 percent capacity utilization to secure its long-term financial health, senior officials from India’s Ministry of Steel said on Wednesday, December 3. The comments follow an operational review conducted by a team of joint secretaries and RINL’s top management.
Ministry officials highlighted that up to September 2025 RINL had been operating only one of its three blast furnaces at its Visakhapatnam steel plant, which has a total crude steel capacity of 7.3 million mt per year.
The remaining two furnaces were restarted only after the company received a government-approved financial bailout package.
Despite the restart, the ministry noted that operational performance has not improved as expected, raising concerns about the plant’s ability to reach sustainable production levels.
Minimum 19,000 mt daily output required for viability
The ministry emphasized that RINL must produce at least 19,000 mt of crude steel per day, equivalent to 92.5 percent capacity utilization, to achieve long-term viability.
Without meeting these output levels, officials warned, the steelmaker cannot expect further financial assistance from the central government.
“Improving internal performance and achieving the production target is essential for RINL’s survival,” the officials reiterated.
Frequent conveyor belt failures impacting stability
The review team expressed serious concern over recent production setbacks. Output is reported to have declined in the current month, even after the revival of the third blast furnace.
Multiple conveyor belt breakdowns over the past 10 days have disrupted stability.
Interestingly, officials noted that the nature of the failures indicates they may not be solely due to poor maintenance or workmanship, raising questions about deeper systemic issues.
Given the company’s ongoing performance challenges, officials reiterated that additional government financial support may not be feasible. Ensuring consistent production and operational discipline will therefore be critical to safeguarding RINL’s future.