New Delhi: In response to an question in the Rajya Sabha, the Government has clarified its ongoing position on the status and future of Rashtriya Ispat Nigam Limited (RINL) also know as Vizag steel plant, stating that funds have been released to support the public sector steel company, while disinvestment remains firmly on the agenda.
YSRC MP YV Subba Reddy, sought detailed information on capital allocation, voluntary retirement measures, and the Government’s plans regarding privatization and possible merger with Steel Authority of India Limited (SAIL).
In a written reply,Bhupathiraju Srinivasa Varma, Minister of State in the Ministry of Steel, stated that the Government of India has approved ₹11,440 crore as capital infusion for RINL, of which ₹9,824 crore has already been released according to quarterly disbursement targets.
The Minister also confirmed the implementation of a Voluntary Retirement Scheme (VRS) at RINL. The scheme saw 1,017 employees apply by the last submission date of July 15, 2025. Applicants had until July 18, 2025, to withdraw their submissions.
Significantly, on the matter of privatization, the Minister reiterated that the Cabinet Committee on Economic Affairs (CCEA) had, on January 27, 2021, given in-principle approval for 100% disinvestment of the Government’s shareholding in RINL.
However, no proposal is currently under consideration for merging RINL with SAIL, the reply clarified, putting to rest recent speculation around consolidation of public sector undertakings in the steel sector.
The disinvestment of RINL has faced delays and public resistance in recent years, with concerns about strategic asset sales and job losses. However, the latest reply indicates that the Government remains committed to its disinvestment roadmap, while supporting RINL operationally through capital infusions and manpower restructuring initiatives like VRS.