State-owned Rashtriya Ispat Nigam Limited (RINL) will raise Rs 1,000 crore from the sale of its 22.19-acre land in Visakhapatnam. Just last week, state-run construction company NBCC Ltd said it has executed an MoU with RINL for redevelopment and monetisation of 22.19 acres of land in Visakhapatnam.
"The company expects to get around Rs 1,000 crore as the market price of land is around Rs 1 lakh per square yard," a source in the company told news agency PTI.
The amount raised will be utilised by the company to pay back portion of debt. According to available data on RINL's website, the company had a debt of Rs 19,592 crore in financial year 2018-19.
RINL, under the Ministry of Steel, owns and operates a 7.3 million tonne steel plant in Visakhapatnam.
Earlier in January, the Cabinet Committee of Economic Affairs (CCEA) gave 'in-principle' approval for 100 per cent disinvestment of the government's stake in RINL, also called Visakhapatnam Steel Plant or Vizag Steel.
This will be along with RINL's stake in its subsidiaries/ joint ventures through strategic disinvestment by way of privatisation.
It is the country's first shore-based integrated steel plant producing special steel products. It was commissioned in 1992.