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Union steel minister to visit RINL

Visakhapatnam:Union Steel Minister HD Kumaraswamy is visiting the Vizag Steel Plant on Thursday, January 30. The visit gained significant attention following the central government's recent announcement of a Rs 11,400 crore financial package for the Rashtriya Ispat Nigam Limited (RINL).

Kumaraswamy had previously promised that RINL would not be privatized. During the present visit, the labour union would press the minister for allocation of captive mines to RINL and a promise that the company would remain in the public sector.

In view of the minister's visit, the steel plant management conducted an in-camera meeting on Wednesday. Steel secretary Sandeep Pandri, arrived in Visakhapatnam and discussed the RINL's current challenges.

He evaluated the impact of RINL having access to captive mines, noting that while RINL possessed some mines through its association with OMDC, high transportation costs hindered the resource utilization.

His meeting also addressed the issue of whether the company could manage these challenges with its own revenue amidst potential supply chain disruptions.

The meeting noted that a delay in capacity expansion has led to increased costs, raising concerns about the lack of adequate planning during RINL's expansion. The company's saleable steel production capacity exceeds the processing capacity of its mills by nearly 1 million tonnes, resulting in the sale of excess semi-finished steel and limiting its revenue.

Sandeep Pandri said the ministry estimates that Blast Furnace 3 will be operational at full capacity by July 2025.

The discussions noted that RINL could overcome its current challenges by proper functioning of all its blast furnaces, increasing income and reducing fixed costs. However, the main hurdles to starting Blast Furnace 3 include ensuring that the oxygen production aligns with management plans and that sinter production proceeds as required.

Employees seek a clear government statement regarding privatization. Sandeep Pandri emphasised the need for the company to generate its income to cover all fixed costs.


( Source : Deccan Chronicle )
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