State-owned RINL (Rashtriya Ispat Nigam Limited), which has a net debt of Rs 19,592 crore in financial year 2018-19, is looking at raising Rs 1,000 crore from the sale of its 22.19-acre land. This land is located in the heart of Visakhapatnam city, in Andhra Pradesh.
RINL is also called Visakhapatnam Steel Plant or Vizag Steel.
On Thursday, NBCC had announced signing an MoU with RINL for redevelopment and monetisation of its 22.19 acres of land in Visakhapatnam.
"The company expects to get around Rs 1,000 crore as the market price of land is around Rs 1 lakh per square yard. The amount raised would be utilised to pay back portion of debt of the company," a source in the company told PTI. However, the value of the project would be ascertained after the preparation and finalisation of a Detailed Project Report (DPR). NBCC would conduct the DPR and submit it to RINL.
According to available data on RINL's website, the company had a net debt of Rs 19,592 crore in financial year 2018-19. The company without any captive iron ore mine produces over 19,000 tonne of hot metal per day from its three fully operational blast furnaces at the plant.
On January 27, the Cabinet Committee of Economic Affairs (CCEA) gave 'in-principle' approval for 100 per cent disinvestment of the government's stake in RINL. This will be along with RINL's stake in its subsidiaries/ joint ventures through strategic disinvestment by way of privatisation.
There is a huge protest by the Andhra Pradesh government and the workers’ unions of the steel plant over the privatisation of this plant.
(Input from Agencies)