Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) will likely to sell its forged steel wheel plant located in the northern state of Uttar Pradesh to national transporter Indian Railways (IR), government sources said on Wednesday, January 17.
The sources said that the sale of the 100,000 unit per year capacity forged wheel plant is part of RINL efforts to monetize assets and reduce its accumulated debt.
The forged wheel plant has been up for sale since 2022. It was established by RINL with an investment of $287 million, based on a 30-year off-take agreement for its entire production with IR.
The sources said that, in view of the offtake agreement between RINL and IR, it is not considered prudent to sell the unit to a private investor and instead IR will buy out the unit and outsource the operation of the plant to a third party.
