State-owned steel-maker, Rashtriya Ispat Nigam Ltd (RINL), is looking at monetising land parcels available with it as it intends to tide over a working capital crisis.

The CPSE has sought the Steel Ministry’s intervention in fast-tracking two leases - one to NMDC and another to Power Grid Corporation of India Ltd (PGCIL) – with the cumulative lease premium under discussion being upwards of ₹600 crore.

RINL has also identified some 210-odd acres of land for possible allotment to NMDC – for long-term lease - so that the latter can set up an “iron ore pellet plant”.

In a letter, the Chairman and Managing Director of RINL, Atul Bhatt, has mentioned that the company has already sought willingness of NMDC for accepting the terms and conditions of land lease (the 210 acres identified).

“The valuation of the land has been completed and the same was communicated,” officials aware of the discussions said.

In another case, 21.84 acres of land has been offered to NMDC for a maximum period of five years for setting up of iron ore stock yard (inside RINL premises). The license fee in this case is fixed at ₹53 crore per annum.

“Keeping in view the financial position of RINL, your personal intervention is requested in expediting the above two issues at the earliest so that further necessary action would be taken at our end,” a letter to the Ministry and also to NMDC, said.

PGCIL Lease

In case of Power Grid Corporation of India Ltd (PGCIL), the steel-maker has revised the land lease premium, that is hiking the premium by 60 per cent, to ₹367 crore, from the existing ₹230 crore.

“A team of PGCIL officials visited RINL for discussions where it was informed that the premium is likely to be revised upwards,” the official aware of the discussions said.

The lease which expired in March 2022 covers 129.254 acres of land.

RINL, in its annual report FY22, mentions that as a lessor it has given land on operating lease basis to agencies that include 149.25 acres to PGCIL for a period of 33 years; around 49.50 acres to NTPC for Rail Road Corridor for 99 years; 3.33 acres to Gangavaram port for laying railway track (33 years) and 9.27 acres to Liquide India Holding for construction of air separation plant.

Lease income (for RINL) in FY22 was Rs 0.07 crore.

RINL-Power Grid JV

An RINL-Power Grid JV for setting up transmission line tower units- RINL Power Grid TLT Private Limited (RPTPL) where the two were 50:50 partners was called off in FY23 in view of changed business scenario

Post approval from the board of the two companies, the Steel Ministry gave a go ahead to wind down the company, in July 2022.

“Meanwhile, a Joint Working Committee, formed with representatives from both RINL and Power Grid is working on closing of the contract of RPTPL,” the annual report reads.

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