Govt pumps rs 10,300 crore into vizag steel

he Indian government’s thrown a Rs 11,440 crore lifeline to Rashtriya Ispat Nigam Limited, better known as Vizag Steel, with Rs 10,300 crore in fresh equity to yank it from the financial brink. The steel giant’s been bleeding—negative net worth at Rs 4,538 crore, liabilities towering over Rs 26,000 crore—thanks to high costs and limp production at its 7.3 million-tonne Visakhapatnam plant. A local steelworker might exhale, seeing a shot at steady paychecks again.

The Cabinet Committee on Economic Affairs okayed this in January 2024, pairing the equity with Rs 1,140 crore in converted loans—7% preference shares, redeemable in a decade—to ease the cash crunch. Minister Bhupathiraju Srinivasa Varma says it’s about jacking up efficiency and steel output, syncing with the National Steel Policy’s push to cut imports. The infusion’s a jolt to kickstart furnaces and clear debts, though the road’s still rocky with global prices bouncing.

This isn’t just a bailout—it’s a bet on Vizag Steel’s muscle in India’s industrial spine. The plant’s revival could ripple, bolstering “Make in India” and steadying a wobbly giant that’s defaulted on loans since mid-2024.