RINL Identifies Land Assets Worth ₹200 Crore to Ease Fiscal Stress

Rashtriya Ispat Nigam Limited (RINL), the state-owned steel producer, has set its sights on monetising non-core land parcels worth ₹200 crore in FY26. This move follows a successful monetisation of land assets worth ₹248 crore in FY25, and is part of the company’s broader plan to stay operational amid mounting financial distress.

Unlike some disinvestment exercises where proceeds flow to the central government, this particular asset sale will directly benefit RINL. The aim is to boost liquidity into the firm to help address immediate financial obligations and support ongoing operations.

Asset Sales as a Lifeline for RINL

The plan to monetise land is not an isolated effort. It forms part of a larger revival strategy for the struggling steelmaker. In January 2025, the Cabinet Committee on Economic Affairs, led by the Prime Minister, approved a revival package worth ₹11,440 crore for RINL. 

This included an equity infusion of ₹10,300 crore and conversion of ₹1,140 crore in working capital loans into preference share capital, repayable after 10 years. RINL, which runs the Visakhapatnam Steel Plant in Andhra Pradesh, has been grappling with severe financial challenges. It has even released partial salaries to employees for several months in late 2024, reflecting its cash flow constraints.

Production and Financial Overview

Despite producing 2.68 million tonnes (Mt) of hot metal and 2.37 Mt of saleable steel between April and December 2024, RINL reported a pre-tax loss of ₹3,943.43 crore in the same period. Its total income stood at ₹12,615.03 crore, while its liabilities reached a staggering ₹38,965 crore as of December 31, 2024.

Steel Sector’s Strategic Importance

The steel industry is critical to India's infrastructure and economic growth. Recognising this, the government introduced the National Steel Policy in 2017, which targets a crude steel capacity of 300 million tonnes by 2030–31. Public sector players like RINL play a key role in achieving this vision.

At the India Steel Summit in April 2025, Prime Minister Modi reaffirmed steel’s importance, linking its strength to national development—from skyscrapers to smart cities.

Green Steel and Sustainable Moves

In line with India’s green transition, the Ministry of Steel is encouraging eco-friendly practices like green hydrogen use and electric arc furnaces. RINL has shown leadership in this space, winning the National Energy Leader Award in 2024 for its energy efficiency and sustainability efforts.

As RINL battles its financial problems, asset monetisation remains a crucial tool in its efforts to stay afloat and support India’s steel ambitions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.