RINL needs Rs 5k-cr working capital, good bailout package
Experts say govt should ensure production of 7.3 million tonnes by operating all the three blast furnaces and consider merger with SAIL
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Visakhapatnam: Several experts who worked in the Rashtriya Ispat Nigam Limited (RINL) in senior management cadre and a galaxy of trade union leaders have asked the Central Government to immediately sanction a working capital grant of Rs5,000 crore, raw material security, ensure production of 7.3 million tonnes by operating all the three blast furnaces and consider remerger with Steel Authority of India Limited (SAIL).
RINL is leading a hand-to-mouth existence due to heavy debt liability, high production cost and working capital crisis.
RINL, the corporate entity of Visakhapatnam Steel Plant (VSP), after expanding its capacity in phases to 7.3 million tonnes with an investment of Rs16,300 crore, is operating only two blast furnaces out of three due to raw material crisis and working capital crunch. Its attempts for monetisation to overcome resource crunch has not yielded desired results. Adding salt to the injury, the Centre’s January, 2021 decision for privatisation is hanging over its head as a Damocles Sword.
At a recently held workshop by the CITU and attended by former CMD of RINL Y Siva Sagar Rao, former Director (Operations) KK Rao, all India CITU general secretary Tapan Sen, State general secretary Ch Narsinga Rao, Steel Workers’ Federation India (SWFI) general secretary Lalit Mishra, Steel Plant Employees’ Union (recognised union) president YT Dasu and honorary president Ch. Ayodhya Ram, a resolution was adopted asking the Centre to consider the revival package to put RINL back on the profit path.
Tapan Sen in his address told the participants as to how a peaceful struggle by the workers helped in saving IISCO Steel Plant at Burnpur from privatisation.
Siva Sagar Rao said as India has set steel production targets of 300 million tonnes by 2030, it makes sense if SAIL and RINL are converted into a giant public sector steel PSU.
Narsinga Rao later told Bizz Buzz that the management was also responsible for its ill-conceived decisions for the present plight of RINL and called for united efforts to help RINL make a turnaround in a short time by infusing working capital grant and increasing its production as per its capacity.
