Visakhapatnam Steel Plant hit by slump, imports: Centre
Minister of State for steel Vishnu Deo Sai said in Rajya Sabha on Wednesday said sluggish market conditions and cheaper imports resulted in the losses to Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Limited).
Visakhapatnam: Minister of State for steel Vishnu Deo Sai said in Rajya Sabha on Wednesday said sluggish market conditions and cheaper imports resulted in the losses to Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Limited).
Reduction of prices to weather cheap imports landed the company in losses, says Minister of State for steel Vishnu Deo Sai to a reply to YSRCP member Vijayasai Reddy in RS
He was explaining the main reasons for the difficult period the VSP is going through in a reply to a question by YSRCP member Vijayasai Reddy in Rajya Sabha.
The minister said market conditions prompted domestic steel companies to adopt aggressive pricing strategies by way of undercutting prices to sustain sales and contain inventory levels. Vijayasai Reddy asked the minister to reveal the facts about the losses of the RINL. The member also questioned the minister about the present status of the company.
Vishnu Deo Sai said that the effect on RINL on account of these external factors led to fall in the net sales realisation (NSR) per tonne of saleable steel and pig iron by around 24 per cent and 29 per cent respectively from the levels prevailing in 2014-15 fiscal, which impacted sales turnover in 2015-16.
The RINL registered around 39 per cent of growth in saleable steel sales volume and around 5 per cent growth in turnover during 2015-16 fiscal as compared to 2014-15. However, the RINL incurred net losses of Rs 1,421 in 2015-16, the minister explained. The RINL completed its capacity expansion from three million tonnes per annum (mtpa) of liquid steel to 6.3 mtpa in April, 2015. Presently, the RINL is in a consolidation phase to maximise returns from expansion units, the he said.
