India-based Rashtriya Ispat Nigam Limited (RINL) has restarted its third blast furnace at its steel plant in Visakhapatnam as of July 2. According to the company’s statement, bringing this furnace back online has increased its total annual crude steel production capacity from 5 million mt to 7.5 million mt.
$1.34 billion rescue package from government
The restart of the third blast furnace was made possible by a $1.34 billion support package approved by the Indian government in January 2025. The package includes equity infusion and debt restructuring, aiming to stabilize production and ensure the company’s financial sustainability.
Securing raw material supply is essential
While labor unions welcomed the resumption of the third furnace, they emphasized that securing iron ore supply is critical for the company’s long-term sustainability. A union official stated, “The right approach is for the government to allocate iron ore mines to Visakha Steel. Additionally, a merger of RINL with SAIL would be a solution for a stable future.”
Since RINL does not own its own iron ore mines, the company is forced to source around $470 million worth of raw materials annually from the external market. This significantly increases production costs and undermines competitiveness.