RINL invites EoI for maintenance of Sinter Plant-1, RMHP, unions cry foul

Rashtriya Ispat Nigam Limited (RINL) has sought EoI from prospective bidders for 'comprehensive technical management & maintenance' of Sinter Plant -1 and 'technological upkeep of wagon tipplers, total mechanic maintenance with housekeeping' of Raw Materials Handling Plant (RMHP) tipplers and stacking stream; drawing severe criticism from the trade unions.

The sinter plant is a vital unit of the Visakhapatnam Steel Plant, which processes iron ore fines and fluxes and subsequently feeds them into the blast furnaces to produce liquid steel. On the other hand, RMHP takes care of storage and movement of raw materials like iron ore and coal, which RINL, the corporate entity of VSP sources from NMDC and several other suppliers.

The notification for EoI has been issued at a time when RINL trade unions have been insisting on a mega merger of RINL, SAIL and NMDC to make it a giant steel public sector undertaking. The Government of India early this year bailed out RINL from the brink of closure by launching a Rs.11,440-crore revival package. RINL, the corporate entity of VSP, at present is operating two of the three blast furnaces. As part of revival, thrust is on operating at full capacity of 7.3 million tonne per annum by running all the blast furnaces.

The EoI has sought qualified agencies to maintain and ensure the smooth functioning of the sinter plant and RMHP through timely cleaning and material handling operations.

"Our suspicion is proving to be true. The EoI for comprehensive management of two vital components of steel production is a ploy to privatise after a few years under the alibi that the revival package did not yield the desired results leaving them no alternative but to privatise it," INTUC leader and Visakha Steel Employees' Congress president Neerukonda Ramachandra Rao, told Bizz Buzz.

The unions contend that as part of cost-cutting measures, the manpower is being pruned and on the other hand, excessive emphasis is being laid on running various operations through private parties compromising safety protocols.

AITUC national vice-president D. Adinarayana said the fire-fighting operations, which used to be done by CISF, have already been privatised. Part of maintenance of sinter plant and RMHP have been privatised. "Though the cost of operation went up three-fold with the involvement of private parties, still the company at the benest of the Centre seems to be in a hurry to hand over comprehensive maintenance responsibility to private parties with an ulterior motive," he alleged.