MP Rao demands iron ore supply to RINL from C’garh
RINL asked to source raw material from Karnataka to cost Rs 800 extra per tonne as NMDC prefers private players, says GVL Narasimha Rao
image for illustrative purpose
Visakhapatnam Responding to the latest crisis faced by the Rashtriya Ispat Nigam Limited (RINL) after the decision of mining major NMDC to supply iron ore from Karnataka instead of Kirandul and Bacheli blocks in Chhattisgarh, BJP national spokesman and Rajya Sabha member G V L Narasimha Rao has urged Union Steel Minister Jyotiraditya Scindia to ensure a status quo.
RINL has a long-term arrangement with NMDC for supply of the raw material from Chhattisgarh for meeting the iron ore requirement of Visakhapatnam Steel Plant since its inception. The ore is transported by rakes through Kothavalasa-Kirandul railway line.
GVL mentioned in a letter to Scindia that RINL should be given preferential treatment and not negative discrimination. NMDC recently informed RINL management that due to fall in production in Chhattisgarh, it will be better if iron ore is sourced from its mines in Karnataka.
“As most of the iron ore from Bacheli and Kirandul mines is being supplied to private steel producers, NMDC has now asked RINL to receive most of its iron ore requirements from its mines in Karnataka which is more than 900 km away from Visakhapatnam resulting in an additional expenditure of around Rs.800 per tonne on account of transportation,” he said.
Sounding an alarm, GVL said that at present, RINL is running with only four days stock of iron ore, while the plant requires a minimum 10 days of stock even to operate two blast furnaces and 15 days of stock to operate three blast furnaces. As both the RINL and NMDC are under the administrative ambit of the Ministry of Steel, the MP urged Scindia to intervene and direct NMDC to resume supply of iron ore from Bacheli and Kirandul mines in Chhattisgarh.
