Steel Executives Assn writes to Union minister to save RINL

Visakhapatnam: Representatives of Steel Executives Association requested for SAIL to bid in Expression of Interest (EOI) issued by RINL for providing working capital, raw material against supply of steel.

In a letter addressed to the minister of civil aviation and steel Jyotiradiya M Scindia, the representatives of the association said RINL is one and only shore-based integrated steel plant with two major ports in a vicinity of 25-km.

However, RINL couldn't achieve its rated capacity due to its financial crisis. Also, it didn't have captive iron and coal mines since its inception whereas SAIL is having excessive iron ore fines in its mines. RINL is purchasing iron ore from NMDC at market price. In account of iron ore, RINL is bearing Rs4,000 to Rs5,000 extra for one tonne of crude steel production, they pointed out.

They further informed that while RINL is associated with Gangavaram Port to get imported coking coal through conveyor as both are situated side by side, SAIL is also importing coking coal from Gangavaram Port and transporting by rail which is costing around Rs1,000 per tonne.

SAIL doesn't have a production unit in South India for long products and has to send from the northern region to its southern marketing yards. In the recent past the company got good export orders in structural and intermediate products. All these can be produced in RINL and exported through two major ports nearby Visakhapatnam Steel plant, the representatives explained. As RINL could produce class products with quality on par with SAIL, the representatives mentioned that if SAIL gets the EOI by RINL, costs can be reduced by logistics and ore fines utilisation could be made possible. In the process, RINL will also be benefited as its production cost will come down significantly by maximum utilisation of equipment and well-trained manpower, they added.

Apart from satiating the emotional connect, the representatives said, RINL has with AP, it was established after a great struggle. Hence it would be a win-win situation for both SAIL and VSP if they collaborate with one another to sail through the crisis.

Even in tough times, RINL registered around Rs.23,000 crore turnover in 2022-23 with only two blast furnaces in operation as the third one was shut-down in January, 2022 due to lack of coking coal and working capital, said president of the association Katam SS Chandra Rao and general secretary KVD Prasad of the association. Further, they added that the tie up of SAIL and RINL will certainly strengthen the government's aim in terms of achieving Atmanirbhar Bharat. Earlier, the association made several representations to the government to merge RINL with SAIL.