The Chairman and Managing Director (CMD) of RINL, which oversees Visakhapatnam Steel Plant, Atul Bhatt, recently revealed an important partnership that promises to bolster the plant’s operations. RINL has successfully entered into a memorandum of understanding (MoU) with Jindal Steel and Power Limited (JSPL) to secure vital working capital necessary for purchasing raw materials to start and run Blast Furnace-3 (BF-3).
Scheduled for blowing in on December 30, BF-3 aims to produce 2 lakh tonnes of hot metal every month, thereby boosting Visakhapatnam Steel Plant’s overall production by 2.5 million tonnes per annum, as per an official source.
During an interactive session with major trade union representatives, the CMD shared that the agreement with JSPL will provide RINL with 800–900 crore as a working capital advance. This funding will facilitate the procurement of raw materials crucial for the consistent operation of BF-3. In return, RINL will supply approximately 90,000 tonnes of cast blooms monthly from Steel Melting Shop-2.
This collaboration is expected to enable RINL to generate additional revenue by selling around one lakh tonnes of saleable steel, even beyond the committed quantities supplied to JSPL. Consequently, monthly sales turnover is predicted to increase by about 500 crore, potentially reducing losses by approximately 50–100 crore monthly.
Atul Bhatt emphasized the significance of this collaboration and appealed to all trade unions and the entire workforce for their support in ensuring sustained growth and profitability at RINL. He assured that the management would always strive to implement initiatives beneficial for the plant’s sustenance and profitability, aligning with the interests of all stakeholders, including the workers.
Restarting the third Blast Furnace is seen as a strategic move aimed at optimizing production capacities, which is anticipated to contribute significantly to enhancing RINL’s financial standing.