Rashtriya Ispat Nigam

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Rashtriya Ispat Nigam Limited
Type Public-sector undertaking
Industry Steel
Founded 18 February 1982 (1982-02-18)[1]
Headquarters Visakhapatnam, India
Key people P Madhusudan, Chairman & MD
Products Steel
Revenue INR106.35 billion (US$1.8 billion) (2010)[2]
Net income INR7.97 billion (US$130 million) (2010)
Website www.vizagsteel.com

Rashtriya Ispat Nigam Ltd, (abbreviated as RINL), also known as Vizag Steel, is an Indian government-owned steel producer. Based in Visakhapatnam, RINL has been awarded the Navaratna status, with accompanying autonomy of operations, due to its strong financial performance.[3]

History[edit]

The plans for a steel plant in Visakhapatnam were announced in 1971 by then Prime Minister of India, Indira Gandhi. Originally, intended as a plant of the state-owned Steel Authority of India Limited, RINL was established as a separate company in 1982, just before the start of its operations. It has been constructed with collaboration with former USSR and Germany. It is amongst the most advanced Steel plants in India and one of largest integrated steel plants in the world.

RINL is wholly owned by the Government of India. In November 2010, the company was granted the Navratna status by the Government of India.[4] [5] In September 2011, the government announced plans to divest 10% of its stake in RINL via an initial public offering.[6]

Operations[edit]

RINL operates a 3 million tonne per annum capacity steel plant in Visakhapatnam.[7]During the initial periods, the company suffered huge losses. Later the profits have gone up by 200% making it the only steel industry to achieve such target.

RINL is investing INR125 billion (US$2.1 billion) in the first phase of expanding its capacity, to target production of 6.3 million tonnes of steel a year by 2014.[2][8]

In the next phase of its expansion, it plans to invest INR70 billion (US$1.2 billion) to add another 4 million tonnes to its annual capacity. In addition, it plans to invest INR250 billion (US$4.2 billion) to add capacity for the production of 4 million tonnes of specialised steel. Its annual capacity is expected to reach almost 7.5 million tonnes by 2015.[9]

References[edit]

  1. ^ "RINL Formation Day Celebrated". Rashtriya Ispat Nigam Limited. Retrieved 2 September 2011. 
  2. ^ a b "Annual Report, 2009–10". Rashtriya Ispat Nigam Limited. Retrieved 2 September 2011. 
  3. ^ "List of Maharatna, Navratna and Miniratna CPSEs". Department of Public Enterprises, Government of India. 20 July 2011. Retrieved 2 September 2011. 
  4. ^ "RINL conferred Navratna status". Rashtriya Ispat Nigam Limited. 16 November 2010. Retrieved 2 September 2011. 
  5. ^ "Visakhapatnam Steel Plant unions serve strike notice". 10 June 2012. 
  6. ^ "India to Sell 10% Stake in Rashtriya Ispat Nigam". Wall Street Journal. 2 September 2011. Retrieved 2 September 2011. 
  7. ^ "Expansion Plans". Rashtriya Ispat Nigam Limited. Retrieved 2 September 2011. 
  8. ^ "Annual Report 2012-2013". 
  9. ^ "Q&A: Pradip Kumar Bishnoi, Rashtriya Ispat Nigam Limited". Business Standard. 25 April 2011. Retrieved 2 September 2011.