Andhra Pradesh: GVL urges Ministry of Steel to address working capital issues at Visakhapatnam Steel Plant

“The lack of captive mines and the high cost of raw materials hamper the operation of the plant”

“The lack of captive mines and the high cost of raw materials hamper the operation of the plant”

BJP member Rajya Sabha, GVL Narasimha Rao has urged Union Minister for Steel Jyotiraditya Scindia to step in and end the working capital problems facing Visakhapatnam Steel Mill (RINL).

Mr. Narasimha Rao met with the Union Minister in New Delhi on Thursday and discussed in detail the financial health of the VSP.

“We discussed the unavailability of working materials, the high cost of raw materials and unfavorable market conditions. These issues are negatively impacting the financial health of Rashtriya Ispat Nigam Limited (RINL), the legal entity of the Visakhapatnam Steel Plant, which made a net profit of ₹913 crore last financial year,” Mr. Narasimha Rao after the meeting.

In addition to non-availability of working capital, the BJP MP said, the huge annual interest charge of up to ₹2,500 crore, lack of captive iron ore mines, high cost of materials raw materials and vacant management positions hampered the operation of steel. plant.

He also talked about the dynamism of the RINL and how it has been a major contributor to the economy of Andhra Pradesh in general and the Visakhapatnam region in particular. “The efficient and successful operation of the Visakhapatnam steel mill should be a national priority,” said Mr. Narasimha Rao.

Expressing his satisfaction during the meeting, he said that the Union Minister had assured him that the working capital issues would soon be resolved and that the ministry would make advance arrangements for the supply of materials. premieres of the VSP. This would be done to increase the capacity utilization of the RINL, he said.

About Donnie R. Losey

Check Also

KEC International strong backlog, improving net working capital

Supported by a strong backlog, picking up execution and lower commodity prices, KEC International’s earnings …