New Delhi [India], March 22 (ANI): The Government of India has approved infusion of Rs 11,440 crore as Equity/ Preferential capital in RINL, to sustain the operations of RINL and to keep it as a going concern, a press release from Ministry of Steel said.

The Company has focused on improvement in techno-economic performance, better capacity utilization and rationalization of fixed costs etc. to enhance operational efficiency. This aligns with the objectives of National Steel Policy, 2017, the release added.

This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.

In January this year, Union Minister Ashwini Vaishnaw announced Rs 11,440 crore revival package for Visakhapatnam Steel Plant. The decision was made in the cabinet meeting chaired by Prime Minister Narendra Modi.

In this overall package of Rs 11440, fresh equity infusion would be worth Rs 10,300 crore and the conversion of working capital loan into preferred share capital of Rs 1140 crore.

'With this, all the employees of RINL as well as all the people connected with the economic activities of RINL will be immensely benefited and Andhra Pradesh will have a major steel plant revived in the coming days. Very soon RINL will start functioning with two glass furnances and by August it is planned to start all the three glass furnances', Union Minister Ashwini Vaishnaw said after the cabinet meeting.

Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), is a Navratna company under the Ministry of Steel.

Visakhapatnam Steel Plant is the first shore-based Integrated Steel Plant in India. It is a producer of long steel products and caters to the requirements of the construction, infrastructure, manufacturing and automobile sectors.

A revival package has been a long-pending demand from the people of Andhra Pradesh and especially the people working within the steel plant, said Union Minister K Ram Mohan Naidu, who himself comes from the state. (ANI)