Is govt planning to merge SAIL, NMDC with RINL post incentive infusion ?

Recently, the Rajya Sabha was asked a question regarding the infusion of RINL funds. The Steel Ministry's Minister of State, Bhupathiraju Srinivasa Varma, responded by saying that the government regularly evaluates public sector enterprises (PSUs) and takes the necessary actions to support them. To address the financial difficulties Rashtriya Ispat Nigam Limited (RINL), also referred to as Vizag Steel, has been facing, the Indian government recently approved an equity infusion of Rs. 11,440 crore.

This choice was made in an attempt to keep the business afloat, maintain its position in the market, and prevent further financial collapse. The company will receive much-needed funding from the equity infusion to help it stay afloat and restore its financial stability.

 

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There are currently three state-owned steel companies: SAIL, NMDC Steel, and Vizag Steel or RINL, the minister said, adding that "presently, merger of these entities is not under consideration."

However, the Steel Ministry is "actively working" to combine Rashtriya Ispat Nigam (RINL) with Steel Authority of India Ltd (SAIL), according to information released in September of last year. Term loan servicing defaults totalling Rs 410.5 crore up until June cost RINL Rs 2,859 crore in FY 2022–2023.

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In March 2025, MoS Varma announced that the Indian government had approved an investment of Rs 11,440 crore in RINL. He went on to say that Vizag Steel's equity/preference capital infusion does not currently involve any collaboration or cooperation from the private sector. The recovery plan for the steel company RINL was approved by the Cabinet Committee on Economic Affairs earlier this year in January.

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