Bailing out a PSU: Govt's equity infusion in RINL signals a shift in policy | Current Affairs | Vision IAS

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Bailing out a PSU: Govt's equity infusion in RINL signals a shift in policy

1 min read

Revival Package for Rashtriya Ispat Nigam Limited (RINL)

The Union Cabinet Committee on Economic Affairs has approved a financial package of Rs 11,440 crore to revive the struggling state-owned Rashtriya Ispat Nigam Limited (RINL), which operates the Visakhapatnam Steel Plant.

Privatization Plans Abandoned

The government has shifted its strategy from privatization to a bailout, marking a departure from its previous approval for the 100% disinvestment of RINL.

Impact on Strategic Disinvestment Policy

  • The shift in policy highlights the slow progress in the government's strategic disinvestment efforts.
  • Ambitious disinvestment targets have been scaled back, and proceeds are now classified under miscellaneous capital receipts.
  • The financial dependency of PSUs on the Union government has increased, with government support rising from 25% to 61% of total capital outlay between 2019-20 and 2023-24.

Future Outlook

PSUs are expected to generate Rs 3.7 trillion and receive Rs 5.45 trillion in government support for a capital outlay plan of Rs 9.13 trillion in 2024-25.


  • Tags :
  • Rashtriya Ispat Nigam Limited
  • Union Cabinet Committee on Economic Affairs
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