The steel ministry has sought a financial package to ensure that the financially-stressed Rashtriya Ispat Nigam Ltd — the Visakhapatnam-based public sector steel company — remains afloat.

Union steel secretary Nagendra Nath Sinha said the ministry is trying to retain RINL as a ‘going concern’.

Steel minister H.D. Kumaraawamy visited the RINL plant earlier this month and promised all assistance. He also met finance minister Nirmala Sitharaman.

RINL was listed as a disinvestment candidate in 2021. However, because of the opposition of the then state government led by Jagan Reddy, the matter could not proceed.

The Cabinet Committee on Economic Affairs (CCEA) had given an “in-principle” approval for 100 per cent disinvestment in RINL through strategic divestment by way of privatisation in January 2021.

Given that it is a port-based steel plant with unutilised land for future expansion, the RINL divestment may pique the interest of private sector players. However, the government is unlikely to fetch significant value if the plant stops operation.

“Once the steel plant stops operations, several of the units lose value. For instance, coke oven, blast furnace and it takes time and money to revive them,” he explained.

RINL’s bank facilities were downgraded to ‘D’ ratings indicating default or imminent default due to delay in servicing loan recently by India Ratings (Ind-Ra) on July 8.