RINL in loss due to high raw material cost, lower net sales realisation: Kulaste

New Delhi: State-run RINL has suffered losses in the current financial year due to high raw material cost and lower net sales realisation, among other reasons, Minister of State (MoS) for Steel Faggan Singh Kulaste told the Rajya Sabha on Monday. In a written response to a question raised in the House, Kulaste said, "The major reasons for losses suffered by RINL in the Financial Year 2022-23 are high operational cost and lower net sales realization, high raw material cost, increased cost of debt servicing, working capital deficit and adverse domestic and international market conditions for steel products."

Steel Ministry has requested reservation of iron ore block for RINL

The minister told the Upper House that it has, on its part requested the government of Odisha for reserving an iron ore block in favour of Rashtriya Ispat Nigam Limited (RINL). In addition, he said, "RINL has requested State Governments viz. Odisha, Chhatisgarh and Andhra Pradesh for recommending reservation of iron ore deposit under 17(2A) of MMDR Act, 2015 to Ministry of Mines, Government of India."

Govt planning transaction structure for strategic sale of RINL: DIPAM Secretary

"The issues of working capital crunch and high-interest burden have been taken up by RINL with the concerned banks," said the minister.

The Cabinet Committee on Economic Affairs had in January 2021 given in-principle approval for 100 percent strategic disinvestment of the government's shareholding in RINL. The government is working out the transaction structure for the strategic sale.

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