KOLKATA: Rashtriya Ispat Nigam Ltd (RINL), a steel CPSE, on Tuesday said if it can garner Rs 3,000 to 4,000 crore from the monetisation of its forged wheel plant and land parcel, and the ongoing efficiency measures, it will be able to increase production and turnaround from losses.
As RINL is a divestment candidate, the monetisation process is handled by the Department of Investment and Public Asset Management (DIPAM).
“If we are able to fetch Rs 3000-4000 crore from the monetisation of the railway wheel plant and the land parcel at Vizag, it will help us turn around with a reduction in debt and working capital,” RINL (Vizag Steel Plant) CMD Atul Bhatt said on the sidelines of the Steel & Metallurgy Steel Conclave and Award Ceremony.
RINL had invested Rs 2,000 crore in the wheel plant.
The forged wheel plant, a unit of RINL at Rae Bareli in UP, has a capacity of one lakh forged train wheels per year with a provision to expand the capacity up to two lakh wheels per year and supplies to the Indian Railways.
“If the monetisation happens by this fiscal, it will help RINL to come back to cash profit by ramping up production with ongoing operational efficiency projects,” Bhatt said.
In 2022-23, RINL had posted a loss of around Rs 3,000 crore.