RINL: Cash Receipts, Shrinking Wage Bill and Idle Bank Balance Raise Questions Over PSU’s Financial Priorities – Where Is the Money, Honey?
Cash is flowing, payroll is shrinking, yet employees, VRS beneficiaries and widows continue to wait for what they say is rightfully theirs
If money could speak, perhaps it would solve one of the biggest mysteries at Rashtriya Ispat Nigam Limited (RINL). Employees are asking where it went. VRS beneficiaries are asking when their settlements will arrive. Widows are asking when their family pensions will be released. Meanwhile, the company’s financial records tell a story of thousands of crores flowing in, a shrinking wage bill, and cash still resting in the bank.
Somewhere between the cash receipts, the balance sheets, the bank accounts and the payment queues lies a question that refuses to go away: Where is the money, Honey?
Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, is facing uncomfortable questions over its financial priorities after internal documents, which are in possession of www.indianpsu.com, revealed that the company generated cash receipts of ₹36,363 crore between April 2025 and July 2026, substantially reduced its wage bill through manpower rationalisation and still maintained a sizeable cash balance in its bank accounts.
The disclosures have intensified concerns among serving employees, VRS beneficiaries and the families of deceased employees, many of whom allege that payments relating to salaries, voluntary retirement settlements and family pension have remained pending despite the company’s apparent liquidity.
₹36,363 Crore Received in Just 16 Months
Internal financial records reviewed by Indian PSU indicate that RINL received a total of ₹36,363 crore between April 2025 and July 2026.
Where has this ₹36,363 crore been spent?
Cash Still Available Despite Huge Expenditure
The July 2026 cash-flow statement presents another intriguing picture.
During July 2026 alone, cash available for payments stood at ₹3,499.58 crore.
The same records indicate that even after maintaining approximately ₹903.45 crore as Margin Money/FDR/WCDL Closure, effectively serving as an emergency financial cushion, RINL still ended the month with a closing cash balance of ₹195.13 crore.
Employees argue that at least a part of this amount could have been utilised to clear long-pending employee-related liabilities, including VRS settlements, salary dues and family pension payments.
Wage Bill Reduced by ₹55 Crore Every Month
The company’s recurring salary burden has declined sharply over the last eighteen months.
| Period | Gross Salary Bill | Employees |
|---|---|---|
| February 2025 | ₹195 crore | 12,249 |
| August 2025 | ₹171 crore | 10,235 |
| July 2026 | ₹140 crore | 8,498 |
Compared to February 2025, RINL is now saving approximately ₹55 crore every month on salaries.
The workforce has reduced by 3,751 employees, largely due to:
- Voluntary Retirement Scheme (VRS)
- Normal retirement
- Employee resignations
The salary realisation for employees has also improved from 75% in February 2025 to 91% in July 2026, reflecting a smaller workforce and lower salary outgo.
Payroll Payments Continue
Internal payroll records show payments under various heads, including:
- Salary: ₹383.71 crore
- Leave Salary: ₹117.34 crore
- VRS-2: ₹58.78 crore
- VRS-3: ₹14.46 crore
- EFBS: ₹16.75 crore
These figures indicate that RINL has continued to honour several financial commitments even as questions persist over pending employee-related dues.
Where Has the ₹36,363 Crore Gone?
The documents naturally raise questions regarding the deployment of the ₹36,363 crore received during the sixteen-month period.
Among the questions being raised by employees and other stakeholders are:
- How much was spent on procurement of imported coking coal?
- How much was paid to pellet suppliers?
- What payments were made to ferro alloy suppliers?
- How much was spent on calcined lime dolomite procurement?
- How much was utilised towards bank repayments, buyers’ credit and interest servicing?
- How much was spent on freight, logistics and other operational expenses?
- How much remains outstanding to vendors?
READ ALSO: RINL: Are Wrong Priorities Sinking India’s Steel PSU? – Indian PSU | Public Sector Undertaking News
Employees Question Payment Priorities
The issue, employees say, is no longer merely about finances but about priorities.
If RINL could generate ₹36,363 crore in receipts over sixteen months, reduce its monthly wage bill by ₹55 crore, maintain an emergency reserve of over ₹900 crore, and still retain ₹195 crore as closing cash, why have many VRS beneficiaries reportedly not received their full settlements? Why are families of deceased employees still awaiting family pension and other statutory benefits? Why have employees repeatedly complained about delayed salary payments?
These questions have become more pressing as the company’s financial documents appear to suggest that operational payments have continued while employee-related dues remain a matter of concern for many affected families.
Questions RINL Needs to Answer
In the interest of transparency and accountability, RINL management may consider clarifying:
- How was the ₹36,363 crore received between April 2025 and July 2026 utilised?
- How much was paid to suppliers of coking coal, pellets, ferro alloys and calcined lime dolomite?
- How much was spent on debt servicing, bank repayments and buyers’ credit?
- Is the ₹195.13 crore closing balance freely available cash or earmarked for specific commitments?
- Why have VRS settlements, salary dues and widow pension claims reportedly remained pending despite the company’s cash position and significantly reduced wage bill?
- What timeline has been fixed for clearing all pending employee-related dues?
Need for Transparency
The financial records undoubtedly show that RINL has undertaken one of its largest manpower rationalisation exercises in recent years, substantially lowering its recurring wage bill while continuing to generate significant operational cash receipts.
At the same time, the documents in our possession, raise legitimate questions about the company’s payment priorities. Employees, VRS beneficiaries and the families of deceased employees are seeking greater transparency regarding the utilisation of funds and the reasons behind the reported delays in settlement of statutory and employee-related dues.
A detailed clarification from RINL management on these issues would help address stakeholder concerns and provide a clearer understanding of the company’s financial strategy, cash management practices and payment priorities.
However, with the CMD of RINL having already blocked our phone number, expecting a response from the company’s top leadership would be an exercise in futility. The doors of communication, it appears, have been firmly shut.
As the old saying goes, “Water, water everywhere, nor any drop to drink.” At RINL, the irony appears painfully similar: money may have flowed through the books, but for those awaiting widow pensions, relief remains frustratingly out of reach.
To Be Continued…
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