According to reports, the government is looking into a merger of RINL with another state-owned steel business, SAIL, as one option for ensuring the survival of RINL's facility and resolving the Andhra Pradesh-based steel maker's financial and operational challenges.

Plans for the sale of a land tract to NMDC and bank loans are also being considered to provide funds for the continuation of operations at the RINL steel mill, according to PTI. The DFS secretary, steel secretary, and key officials from public sector lender SBI met recently to discuss the RINL issue. SBI has a considerable loan exposure to RINL.

"The administration intends to give a lasting solution to the problem. One of the alternatives under consideration is the merging of RINL and SAIL", the sources stated.

Rashtriya Ispat Nigam Ltd (RINL), which reports to the Ministry of Steel, owns and manages a 7.5 million-tonne factory in Visakhapatnam, Andhra Pradesh. It is India's first shore-based integrated steel factory.

The steel ministry also oversees SAIL (Steel Authority of India Limited).

According to sources, securing finance for operations is also being examined, in addition to other steps such as discussions with lenders for financial help and monetising assets through the sale of a 1,500-2,000-acre land block to NMDC for a pellet factory.

Unlike other key steelmakers, RINL never had the benefit of owning iron ore mines. According to the workers union, this is one of the primary causes of RINL's current predicament.

"RINL never owned captive mines. All other main steelmakers who use blast furnaces benefit from captive mines, which reduces raw material costs. We have always purchased iron ore at market prices," claimed J Ayodhya Ram, the leader of a union contesting the privatization of RINL.

In January 2021, the Cabinet Committee on Economic Affairs (CCEA) approved the 'in-principle' disinvestment of the government stake in RINL, also known as Visakhapatnam Steel Plant or Vizag Steel, as well as RINL's stake in its subsidiaries/joint ventures, through strategic disinvestment via privatization.

RINL's total debts have surpassed Rs 35,000 crore, and the company faces the prospect of being categorized as a non-performing asset by banks. According to the letter, the ministry is working with the finance ministry to maintain RINL a 'going concern'.

RINL has three 2.5-MT blast furnaces (BFs). Of the three furnaces, only BF no. 2 is operational.