Nod for Rs 11,440 Crore Revival of Visakhapatnam Steel Plant
In a significant development for the steel industry and the state of Andhra Pradesh, the Union Government has approved a revival package worth Rs 11,440 crore for Visakhapatnam Steel Plant. This decision, made by the Cabinet Committee on Economic Affairs under the chairmanship of Prime Minister Narendra Modi, marks a pivotal moment for the Rashtriya Ispat Nigam Limited plant, which has long struggled with financial challenges.
What the Rs 11,440 Crore Package Entails
The approved package, totaling Rs 11,440 crore, is primarily aimed at revitalizing the operations of Rashtriya Ispat Nigam Limited, which has been plagued by financial instability and inefficiencies over the years. The steel plant, which operates in Visakhapatnam, Andhra Pradesh, is a key player in India’s steel production sector. It is a coal-based plant, and the revival package aims to boost its production capacity by focusing on infrastructure upgrades, modernizing technology, and enhancing production efficiency.
The government’s support for the plant includes equity assistance of over Rs 10,000 crore, an amount that will be injected into RINL to ensure the plant can continue to meet the growing demand for steel. Blast furnaces will be crucial to this process, with plans to re-activate two blast furnaces, which will significantly enhance the plant's production capabilities.
