Team Blitz India
NEW DELHI: The Indian Railways has taken over operations of the forged wheel plant of debt-laden RINL (Rashtriya Ispat Nigam Ltd) at Rae Bareilly in UP, officials in the know told Businessline.
The take over terms include part payment of cash to the steelmaker — pegged at Rs 800-900 crore — and a transfer of Rs 1000 crore of RINL’s debt to the forged wheel unit.
“Necessary payments have been made,” the official said.
The takeover occurred in April, marking the beginning of this fiscal year, and Railways are already investing in capacity ramp-up at the unit.
The nation’s second-largest steel CPSE, RINL, falls under the Ministry of Steel. While the Steel Ministry retains control of the steel plant, known as Vizag Steel, the Railways now own and oversee the forged wheel unit.
