Cash-strapped Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) has commenced monetization of assets to raise working capital, offering to sell 588 land parcels and 78 houses owned by the company, sources said on Wednesday, June 14.
They said that offers for sale of land parcels and houses have been submitted to other government-run companies targeting to raise an estimated $122 million to fund the working capital requirement of the 7.3 million mt steel mill in the southern port town of Vishakhapatnam.
At the same time, it is learned that RINL has put up for sale its newly-constructed steel forged wheel plant located in the northern state of Uttar Pradesh, targeting to raise another $244 million.
The downstream value addition plant was constructed for the production of 80,000 forged wheels to be supplied to national transporter Indian Railways (IR).
Earlier, RINL had floated a tender seeking partners willing to enter into a barter agreement whereby the partner should offer working capital in the form of steelmaking raw material in lieu of supplies of finished steel products from RINL’s mill, the sources said.