Visakhapatnam: The Ministry of Steel has admitted that there is a fall in production of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant in the current year due to liquidity constraints and declared that efforts are being made to wriggle out the ailing public sector unit out of the present crisis.
Union Minister of State for Steel Faggan Singh Kulaste informed the Upper House in response to the question by BJP member GVL Narasimha Rao said that to increase production, RINL is sourcing iron ore and coal from alternate sources other than the regular sources to ensure increased availability of raw material. To reduce the cost of raw-material of RINL, the Ministry of Steel has taken up with the Ministry of Coal for supply of domestic coking coal and thermal coal to RINL. The Ministry of Steel has also requested the State government of Odisha for allocation of iron ore block through reservation route. In addition, RINL has taken the following initiatives from time to time to improve financial performance.
The Minister said RINL received revenue from operations to the tune of Rs 20,482 crore in 1018-19 with a PAT of Rs 96.70 crore. During H1 of the current fiscal, it received revenue from operations amounting to Rs 1164.32 crore with a PAT of minus 2058.02 crore.
In his reply, he stated that the operational costs are being reduced and cost rationalisation and revenue maximisation are being achieved by optimisation of product mix in line with market requirement to achieve higher realisation and increase in production and sales of value-added steel.
