The Indian government is actively working with the State Bank of India (SBI) to resolve the financial troubles faced by Rashtriya Ispat Nigam Limited (RINL), a state-owned steel producer. According to sources familiar with the situation, SBI has presented potential solutions to help RINL recover from its debt crisis. These solutions were discussed in a meeting with officials from the Department of Financial Services (DFS) and the Ministry of Steel.
An insider mentioned, “The discussions focused on finding a path forward for RINL.” Though details of the meeting were not fully disclosed, it was confirmed that all options, including the possibility of merging RINL with Steel Authority of India (SAIL), remain open for consideration. However, no final decision has been made yet.
Government Pushes for Green Steel Initiatives
During a steel summit hosted by the Confederation of Indian Industry (CII), Sandeep Poundrik, Secretary of the Ministry of Steel, highlighted the government’s current focus on promoting green steel. This effort includes encouraging steel manufacturers to invest in environmentally friendly technologies and transitioning toward the production of green steel.
Poundrik explained that the government is working on several initiatives to support green steel, such as prioritizing its use in government procurement and providing incentives for steel companies to adopt green practices. The government also plans to set clear timelines for the shift toward sustainable steel production, allowing manufacturers to prepare for this transition.
Earlier in the month, the steel ministry published a report titled “Greening the Steel Sector in India – Roadmap and Action Plan.” However, the report lacked a formal definition of “green steel.” Aware of this oversight, the government plans to introduce an official definition of green steel by October.
Poundrik stated, “Our main goal right now is to define what we mean by green steel, and we aim to have a clear definition by next month.”
Encouraging the Use of Low-Grade Iron Ore and Beneficiation
The steel secretary also urged steel companies to focus on using low-grade iron ore by investing in beneficiation facilities. Beneficiation is the process of improving the quality of iron ore by removing impurities and increasing the iron content. This practice can lead to better resource utilization and improved steel production efficiency.
Poundrik reassured steel producers that the government is aware of the challenges they are facing, particularly with domestic steel prices coming under pressure. He promised that the government would take necessary steps to ensure that the industry continues to maintain healthy profit margins.
Conclusion
The government’s ongoing efforts to support RINL, along with its push for green steel initiatives and beneficiation, reflect its commitment to strengthening India’s steel sector. By working closely with key stakeholders like SBI and providing clear guidelines for sustainable steel production, the government is aiming to create a more resilient and eco-friendly steel industry.
