RINL Takes Strategic Steps to Cut Debt, Puts 13.89 Acres Of Land Up For Auction

Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Vizag Steel Plant, which is on a mission to reduce its financial debt, has announced the e-auction and bidding of 13.89 acres of non-core lands, with the upset (reserve) price set at Rs 480 crore.

The Request for Proposal (RFP) had been issued on 14 February. Key dates for the e-auction include a pre-bid meeting on 28 February, the submission deadline for earnest money deposit (EMD) on 5 March, a mock e-auction on 6 March, and the actual e-auction on 14 March. Successful bidders will receive acceptance letters between 25 and 29 March. With the sale of non-core assets through e-auction, RINL aims to enhance its financial health and ensure consistent operations.

The e-auction of 67,277.04 square yards includes plots in HB Colony, Maddilapalem (11.89 acres), Autonagar, Gajuwaka (2 acres), and Old Health Centre, Pedagantyada (0.089 acres). These lands were acquired by RINL in 1980 for putting up staff quarters and other purposes, and will be divided into plots and blocks for the auction. The auction is facilitated by National Land Monetisation Corporation Ltd. (NLMCL), with National Buildings Construction Corporation (NBCC) as the technical and transaction advisor.

Yesterday, an investors’ gathering took place at the plant site, involving NBCC, RINL-VSP, and NLMC, where the move towards monetization received positive responses. Additionally, a roadshow, in collaboration with NBCC and NLMC, addressed queries from potential buyers, emphasizing the transparency of the online e-auction process. The move towards monetization received positive responses at the meetings.

Apart from the bidding of assets, Vizag Steel Plant aims to secure financial stability by signing agreements with Tata International and Jindal Steel and Power Ltd. A Memorandum of Understanding (MoU) with JSPL is expected to bring in Rs 800-900 crore in working capital advance to assist with the revival of Annapurna, a BF-3 blast furnace. In a bid to further reduce debt, RINL is looking to privatize the forged wheel plant near Rae Bareli, and lease surplus lands to the National Mineral Development Corporation (NMDC) for a pellet plant, which will potentially fetch around Rs 1500 crore.