RINL-VSP likely to sell more non-core assets to raise funds

RINL-VSP to sell non-core assets to raise ₹250 crore for working capital, following ₹11,400-crore revival package in 2025.

Rashtriya Ispat Nigam Limited (RINL), the corporate arm of Visakhapatnam Steel Plant (VSP), is believed to have resumed the process of selling its non-core assets to raise at least ₹250 crore for the plant’s working capital requirements in the current financial year 2025-26, according to sources in the management.

If this happens, it will be the first such move after the Centre announced a ₹11,400-crore revival package in March 2025.

Before the announcement of the revival package, the PSU had made such efforts and sold its assets through public auctions on a few occasions. In the last instance (before the announcement of the revival package), it reportedly raised ₹243 crore by selling 72 plots and blocks covering 29,268 sq. yards in HB Colony in Seethammadhara, Auto Nagar and Pedagantyada in Visakhapatnam city in an e-auction held on March 14 and 15.

“Around 111 plots and 19 blocks covering 67,307 sq. yards located in the three locations were put on sale through open auction in February 2025 to sell the assets in phases. The plant was able to earn around ₹243 crore in the first phase, which was completed in March. The management appears to have now resumed the process of monetising the remaining unsold assets announced through public notice. All these plots and blocks cover around 14 acres. An official public notice is expected shortly,” a reliable source from RINL-VSP told The Hindu on condition of anonymity.

Around 220 bidders, including individuals such as NRIs, had reportedly participated in the first phase of the e-auction.

The maximum price for plots in HB Colony then reached ₹1.57 lakh per sq. yard while the reserve price for plots in HB Colony ranged from ₹70,200 to ₹85,800 per sq. yard. Plot sizes in HB Colony range from 129 to 450 sq. yards.

RINL sources said that in the 1980s, the steel plant built quarters in these colonies for all categories of employees, irrespective of their cadre. The plant used to run about three to four buses to ferry employees from these colonies to the plant as there was no steel plant township by the time. In those days, some staff also used to cycle to the plant from these residential places.