Visakhapatnam: Chairman and managing director (CMD) of RINL, the corporate entity of Visakhapatnam Steel Plant, Atul Bhatt, on Thursday announced that the company has successfully entered into a memorandum of understanding (MoU) with Jindal Steel and Power Limited (JSPL) with regard to the much-needed working capital to procure raw material for starting and operating Blast Furnace-3.
BF-3’s blowing-in is planned for December 30 for producing 2 lakh tonnes of hot metal per month. This will enhance the overall production of VSP by 2.5 million tonnes per annum (MTPA), another official said.
In an interactive session with representatives of major trade unions, the CMD disclosed that the arrangement with JSPL would ensure availability of ₹800–900 crore to RINL as working capital advance for acquiring raw materials for consistent operation of BF-3, against which RINL will be able to supply about 90,000 tonnes of cast blooms every month from Steel Melting Shop-2 of RINL.
This arrangement with JSPL will enable RINL to generate additional revenue from increased sales of about one lakh tonnes of saleable steel even after supply of committed quantities to JSPL. The initiative will result in monthly increase of sales turnover by around ₹500 crore per month. This is likely to reduce losses by about ₹50–100 crore per month.
Highlighting the initiative taken by the RINL management towards enhancing the production at the VSP, Atul Bhatt appealed to all trade unions and entire work force for support in ensuring sustained growth and profitability at RINL.
Clarifying various queries raised by the trade unions, the CMD said the company management will always implement the best possible initiatives for sustenance and profitability of RINL, aligning with interests of all stakeholders, including the workers.
Restarting of the third Blast Furnace is a strategic move to optimise production capabilities, thereby contributing to overall improvement in the financial position of RINL.
