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A view of Visakhapatnam Steel Plant (VSP) under the corporate entity Rashtriya Ispat Nigam Ltd
State-owned Rashtriya Ispat Nigam Limited (RINL) will raise Rs 1,000 crore from the sale of its 22.19-acre land in Visakhapatnam. Just last week, state-run construction company NBCC Ltd said it has executed an MoU with RINL for redevelopment and monetisation of 22.19 acres of land in Visakhapatnam. The company expects to get around Rs 1,000 crore as the market price of land is around Rs 1 lakh per square yard, a source in the company told news agency PTI.
The amount raised will be utilised by the company to pay back portion of debt. According to available data on RINL s website, the company had a debt of Rs 19,592 crore in financial year 2018-19.Â
Jagan Mohan Reddy said he would lead an all-party delegation including representatives of trade unions to represent the concerns being expressed by the people of AP, employees and various stakeholders
Jagan writes to FM seeking early revival of Vizag Steel Plant
March 09, 2021
Suggests various options including debt swap, listing, monetising 7,000 acres of land
Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has requested Union Finance Minister Nirmala Sitharaman to convene a meeting to find a resolution for the revival of Vizag Steel Plant (VSP) instead of the proposed divestment by the Central Government.
Among various suggestions, including allocation of captive iron ore mines in Odisha, swapping of high-cost debt of ₹22,000 crore (now at 14 per cent PA), and monetising 7,000 acres of land worth out of VSP’s huge land bank of 19,700 acres worth over ₹1-lakh crore, he suggested that the loans could be converted into equity by the banks so as to remove the interest burden totally.
Mar 09, 2021, 13:08 IST
AMARAVATI: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy again wrote to Prime Minister Narendra Modi to consider revival options of Vizag Steel Plant (Rashtriya Ispat Nigam Limited), rather than proposed divestment.
In the second letter the Chief Minister said, I had clearly mentioned the problems being faced by Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam, suggested various solutions to revive the same and requested to reconsider the decision of 100% strategic disinvestment. I had also addressed the union Minister for steel offering my suggestions to revive RINL and make it financially strong.
Following are the excerpts from the letter:
Jagan s latest missive is seen as a damage control exercise after Union Finance Minister Nirmala Sitharaman s statement in Parliament on Monday that the "state government is consulted in specific matters" (on RINL disinvestment) though the AP government did not hold any equity in VSP.