RINL will soon issue tender to get working capital
A high-power committee set up by the management is currently evaluating the bids received in response to March 23 EoI notification
image for illustrative purpose
Working capital crunch
- Heavy interest liability on loans borrowed for expansion
- 7.3 million tonne per annum capacity
- Immediate need of Rs 4,000 crore to operate all blast furnaces
- Strategic partners meeting technical specifications submit formal bid
The evaluation process got delayed due to certain clearances. Now tender will be floated shortly and we are confident that the company can be put on the right track, Visakha Steel Employees’ Congress leader Neerukonda Ramachandra Rao told Bizz Buzz
Visakhapatnam: Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant is in advance stage of issuing tender notification inviting proposals for partnership for working capital support/raw material supply.
This is in response to EoI sought on March 23 from interested parties in exchange for finished products rolled out from VSP. The integrated steel plant with 7.3 million tonne per annum capacity is unable to achieve its rated capacity due to working capital crunch and heavy interest liability on loans borrowed for expansion. It is in immediate need of Rs 4,000 crore to Rs 5,000 crore to operate all the blast furnaces.
A high-power committee set up by the management is evaluating the bids received in response to March 23 EoI notification. Now anyone meeting technical specifications can submit a formal bid for strategic partnership with RINL.
“The evaluation process got delayed due to certain clearances. Now tender will be floated shortly and we are confident that the company can be put on the right track,” Visakha Steel Employees’ Congress leader Neerukonda Ramachandra Rao told Bizz Buzz.
RINL is the only major steelmaker, which does not have captive iron ore and coal mines thereby putting a heavy burden on the management to incur heavy production cost.The unions including Steel Executives’ Association (SEA), the officers body of RINL, has been batting for merger of the company with NMDC or SAIL or both as a way out to prevent its disinvestment.
Cabinet Committee on Economics Affairs and NITI Aayog in January, 2021 accorded clearance for strategic disinvestment of RINL by way of 100 per cent privatisation. Since then the employees are on a warpath with Chief Minister Y S Jagan Mohan Reddy addressing two letters to Prime Minister Narendra Modi to grant captive mines and explore other options to retain it in the public sector.
There is a buzz that Tata, Adani and Jindal Groups are interested to buy RINL which has a land bank of 20,000 acres.The Gangavaran Port, which is located on the backyard of steel plant, has been acquired by Adani Ports and Special Economic Zone (APSEZ) last year from DVS Raju-led consortium and Andhra Pradesh Government.
During an interaction with customers, RINL CMD Atul Bhatt said that FY2023-24 is going to be a “Momentous Year” as the plant is all set to ramp up production from August, 2023 onwards and assured that the requirement of customers will be fully met from the improved production levels.
Director (Commercial) D K Mohanty explained the global and domestic market scenario. He assured that RINL was and will always strive to protect the interests of their valued customers in the longer run.
