BJP’s GVL seeks Rs 3,110 cr from Centre for RINL revival

Visakhapatnam: Union Finance Ministry has promised to look into revival proposals for Rashtriya Ispat Nigam Limited (RINL), the corporate entity Visakhapatnam Steel Plant.

The promise came when Senior BJP leader and former Rajya Sabha MP GVL Narasimha Rao met cin New Delhi and sought financial support to the tune of Rs 3,110 crore to revive the RINL.

The meeting with the Finance Secretary was both crucial and timely as an inter-ministerial team of senior officials has recently undertaken a detailed review of RINL's functioning.

The team is discussing various possibilities for suitable recommendations to the government. As the seniormost official in the Ministry of Finance, the Secretary has a very important role in making recommendations to the Union Cabinet for any financial support to the RINL.

In a letter submitted to the Finance Secretary, GVL stated, "Visakhapatnam Steel Plant is going through a very severe financial crisis over the past few months due to reasons mostly external to RINL and beyond the control of the company."

He stated that the security of over 30,000 employees of RINL depends on the future of the steel plant. Nearly one lakh families are dependent on the survival of RINL.

Stating that he had raised these concerns about RINL repeatedly both in Parliament and outside, the former MP urged Finance Secretary to support infusion of Rs 3,110 crore by the Union Government towards the issuance of preferential shares to help the company to tide over the present financial crisis.

"At present, the authorized share capital of RINL is Rs 8,000 crores and the paid-up capital is Rs 4,889.85 crore and the balance Rs 3,110 crore can be infused in the form of preferential shares to help RINL to regain a positive net worth", GVL stated in the letter.

Recalling similar support extended by the Atal Bihari Vajpayee Government to RINL in 2002, GVL informed that RINL had repaid Rs 2,937 crore to the Central Government between 2011-2016. In addition to the infusion of financial assistance, GVL urged the Finance Secretary to undertake a series of other measures for the revival of RINL. After the meeting, GVL said that he had also discussed the idea of transfer of ownership of land to RINL to improve its net worth and the company to mobilise additional Rs 4,000 crore through various other sources. A comprehensive set of such proposals will help in nursing RINL back to financial health, GVL mentioned.