The State Bank of India (SBI) has approved a restructuring plan for Rashtriya Ispat Nigam Limited (RINL), the operator of the Vizag Steel Plant, marking a significant step in the company’s revival efforts. The plan includes lowering the margin money requirements and reducing interest rates on loans, made possible by a recent capital infusion from the central government. With this restructuring, RINL is now classified as a standard account with repayments ahead of schedule, allowing banks to offer relief through lower rates .
In January 2025, SBI took over as the lead lender from Union Bank of India and formed a consortium of public sector banks to support RINL’s revival. The total banking exposure to the company exceeds ₹20,000 crore, with SBI being the largest lender, holding ₹6,400 crore in loans .
The restructuring plan is part of a broader ₹11,440 crore revival package approved by the Union Cabinet, which includes a ₹10,300 crore equity infusion and the conversion of ₹1,140 crore in working capital loans into non-cumulative preference shares .
This restructuring is a crucial milestone in RINL’s turnaround strategy, aiming to enhance production capacity and operational efficiency, ensuring the company’s long-term sustainability.
