Visakhapatnam: The
Ministry of Steel has admitted that there is a fall in production of Rashtriya
Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant
in the current year due to liquidity constraints and declared that efforts are
being made to wriggle out the ailing public sector unit out of the present
crisis.
Union Minister of State for Steel Faggan Singh Kulaste informed
the Upper House in response to the question by BJP member GVL Narasimha Rao
said that to increase production, RINL is sourcing iron ore and coal from
alternate sources other than the regular sources to ensure increased
availability of raw material. To reduce the cost of raw-material of RINL, the
Ministry of Steel has taken up with the Ministry of Coal for supply of domestic
coking coal and thermal coal to RINL. The Ministry of Steel has also requested
the State government of Odisha for allocation of iron ore block through
reservation route. In addition, RINL has taken the following initiatives from
time to time to improve financial performance.
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The Minister said RINL received revenue from operations to the tune of Rs
20,482 crore in 1018-19 with a PAT of Rs 96.70 crore. During H1 of the current
fiscal, it received revenue from operations amounting to Rs 1164.32 crore with
a PAT of minus 2058.02 crore.
In his reply, he stated that the operational costs are being
reduced and cost rationalisation and revenue maximisation are being achieved by
optimisation of product mix in line with market requirement to achieve higher
realisation and increase in production and sales of value-added steel.