Mumbai: Banks led by lead lender State Bank of India (SBI) are in the final stages of working out a restructuring package for Vizag's Rashtriya Ispat Nigam (RINL), which includes a reduction in interest rates, reducing some contractual staff, and raising production capacity at the government-owned steelmaker that was defunct until recently. Trump-Modi MeetThe mega MIGA, MAGA plans of India's Modi and US' TrumpTrump says India has more tariffs than othersTrump's 'golden rule' for imposing reciprocal tariffs The account has now been regularised after repayment of loans up to March 2025 following equity infusion into the company by the government earlier this fiscal year, providing banks the support needed to turn around the company, people familiar with the plans said. "The restructuring plan drawn up by SBI Capital Markets envisages increasing the steel plant's capacity, reducing contractual staff and bringing down loan costs to make the debt sustainable," said a person aware of the details. "The government equity infusion has made the account standard, which is the first step. Banks will now work in a consortium to reduce interest rates from the current 14% to 15%, by reducing margins to bring it down to about 9%." Brink of NPA RINL manages a 7.5 million tonne steel plant in Vizag in Andhra Pradesh. It was on the verge of being classified as an NPA in June last year when it had payment dues past 60 days. Any delay in payment attracts higher interest rate and penalties from banks due to heightened risk of default, as a result RINL was paying a higher interest rate despite being a government owned company. Artificial Intelligence(AI)Java Programming with ChatGPT: Learn using Generative AIBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Artificial Intelligence(AI)Basics of Generative AI: Unveiling Tomorrows InnovationsBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Artificial Intelligence(AI)Generative AI for Dynamic Java Web Applications with ChatGPTBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program MarketingPerformance Marketing for eCommerce BrandsBy - Zafer Mukeri, Founder- Inara MarketersView Program Artificial Intelligence(AI)Mastering C++ Fundamentals with Generative AI: A Hands-OnBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program FinanceA2Z Of MoneyBy - elearnmarkets, Financial Education by StockEdgeView Program Artificial Intelligence(AI)Master in Python Language Quickly Using the ChatGPT Open AIBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Office ProductivityZero to Hero in Microsoft Excel: Complete Excel guide 2024By - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Artificial Intelligence(AI)AI and Analytics based Business StrategyBy - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCIView Program Artificial Intelligence(AI)AI-Powered Python Mastery with Tabnine: Boost Your Coding SkillsBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Web DevelopmentAdvanced C++ Mastery: OOPs and Template TechniquesBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program AstrologyVastu Shastra CourseBy - Sachenkumar Rai, Vastu ShashtriView Program FinanceCrypto & NFT Mastery: From Basics to AdvancedBy - CA Raj K Agrawal, Chartered AccountantView Program Data ScienceSQL for Data Science along with Data Analytics and Data VisualizationBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program LegalComplete Guide to AI Governance and ComplianceBy - Prince Patni, Software Developer (BI, Data Science)View Program Web DevelopmentA Comprehensive ASP.NET Core MVC 6 Project Guide for 2024By - Metla Sudha Sekhar, IT Specialist and DeveloperView Program TechnologyCertified Jenkins ProfessionalBy - Vskills, India's Leading Certification BodyView Program Office ProductivityMastering Microsoft Office: Word, Excel, PowerPoint, and 365By - Metla Sudha Sekhar, IT Specialist and DeveloperView Program MarketingDigital marketing - Wordpress Website DevelopmentBy - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expertView Program Web DevelopmentMastering Full Stack Development: From Frontend to Backend ExcellenceBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program FinanceFinancial Literacy i.e Lets Crack the Billionaire CodeBy - CA Rahul Gupta, CA with 10+ years of experience and Accounting EducatorView Program LeadershipBusiness Storytelling MasterclassBy - Ameen Haque, Founder of StorywallahsView Program MarketingFuture of Marketing & Branding MasterclassBy - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding ConsultantView Program Last month, the Union Cabinet approved a ₹11,440 crore package to bail out RINL, including an equity infusion of ₹10,300 crore. The Cabinet note also talked about conversion of ₹11,440 crore working capital loan at 7% non-cumulative preference share capital redeemable after 10 years to keep it as a going concern. Late last month, SBI took over as lead lender from Union Bank of India and has now taken charge of RINL's revival. Total banking exposure to the company is more than ₹20,000 crore, with SBI as the largest lender with ₹6,400 crore in loans. SBI did not reply to an email seeking comment till press time. Bankers said the government has already infused close to ₹7,500 crore into the company and now with regular payments, lower interest rates are being worked out. "The only hitch is that the Reserve Bank's norms say any restructured account cannot be upgraded, which means rates cannot be reduced. Banks will try to impress on the regulator that this is a special case as the default rating will anyway be ungraded by April," the person cited above said. Bankers said the steel plant, in which just one of the three blast furnaces was working just a year ago, is now up and running with two furnaces at 105% capacity and the third is likely to be restarted in July. With total capacity now over 65%, another requirement of the restructuring is fulfilled to ensure sustainable operations for the long term, bankers said. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
