MP GVL raises RINL issue in Rajya Sabha
In Rajya Sabha, MP GVL Narasimha Rao urged Steel Ministry to solve operational and raw material problems faced by RINL’s Visakhapatnam Steel Plant.
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Vijayawada: In Rajya Sabha, MP GVL Narasimha Rao urged Steel Ministry to solve operational and raw material problems faced by RINL's Visakhapatnam Steel Plant.
Asked about the reasons for Rashtriya Ispat Nigam Ltd (RINL) incurring losses this year while it made good profits last year, Minister of State for Steel Faggan Singh Kulaste mentioned high operational cost and lower net sales realization, high raw material cost, increased cost of debt servicing, working capital deficit and adverse domestic and international market conditions for steel products as the major reasons.
When asked whether the Central Government would help RINL to obtain captive iron ore mines to reduce its raw material cost, the Minister of State stated that RINL had requested State Governments viz Odisha, Chhattisgarh and Andhra Pradesh for recommending reservation of iron ore deposit under 17(2A) of MMDR Act, 2015 to Ministry of Mines, Government of India.
He added that the Ministry of Steel had also requested Government of Odisha for reservation of an iron ore block in favour of RINL. Enquired about the steps taken to help RINL tide over working capital problems, the Minister stated that the issues of working capital crunch and high interest burden have been taken up by RINL with the concerned banks.
