GVL seeks Union minister's intervention to resolve VSP woes

Visakhapatnam: BJP MP GVL Narasimha Rao met Union Steel Minister Jyotiraditya Scindia and sought the ministry's intervention to ease severe working capital problem faced by Visakhapatnam Steel Plant (VSP) and enable it for a full-fledged operation.

In a letter submitted to the Minister, MP GVL highlighted that non-availability of working material, high raw material cost and adverse market conditions have affected the functioning of the Rashtriya Ispat Nigam Limited (RINL).

This is adversely impacting the financial status of the plant in the current year, while it made a net profit of Rs 913 crore last year. In addition to non-availability working capital, huge annual interest burden of RINL at Rs 2,500 crore due to high interest rates, lack of captive iron ore mines, high cost of purchased raw material and vacant management level positions in RINL are the other factors hampering the decision making process, GVL included in the letter to the Union Steel Minister.

Stating that a strong, vibrant, profitable RINL is a major contributor to the economy of Visakhapatnam region and Andhra Pradesh, GVL mentioned that efficient and successful operation of Visakhapatnam Steel Plant has to be a national priority.

Expressing satisfaction over his meeting with the Union Steel Minister Jyotiraditya Scindia, the MP informed that the Minister assured that the working capital problem would be resolved at the earliest and the Ministry would further make arrangements for raw material supply to the RINL on an advance basis. This will be done to increase the capacity utilisation of RINL, the Steel Minister said.