BJP Rajya Sabha member G.V.L. Narasimha Rao has urged Union Minister of Steel Jyotiraditya Scindia to restore at the earliest the supply of iron ore to the Rashtriya Ispat Nigam Limited (RINL) in Visakhapatnam from the NMDC’s Bacheli and Kirandol mines in Chhattisgarh.
“RINL is the largest industrial enterprise in Andhra Pradesh and its performance has a significant effect on the industrial economy of Andhra Pradesh,” Mr. Narasimha Rao said in a letter to Mr. Scindia. He further said that RINL’s performance would have an impact on the livelihood of lakhs of families in and around Visakhapatnam.
Mr. Narasimha Rao thanked the Union Minister for providing relief earlier to the RINL in the form of working capital from banks based on his requests and parliamentary interventions.
He highlighted the problem being faced by RINL regarding supply of iron ore from NMDC Limited, another Central Public Sector enterprise under the Steel Ministry.
He said that since RINL’s inception, the NMDC had been supplying iron ore fines, lump and sized ore from Bailadilla (Bacheli and Kirandul) mines in Chhattisgarh to RINL till a few months ago. “These are the nearest and best quality iron ore mines at a distance of 560 km from Visakhapatnam,” he said.
As most of the iron ore from Bacheli and Kirandul mines was being supplied to private steel producers, the NMDC had asked RINL to source most of its iron ore requirements from its mines in Karnataka, which were more than 900 km away from Visakhapatnam, resulting in an additional expenditure of around ₹800 per tonne on account of transportation, Mr. Narasimha Rao said in the letter.
Alarm sounded
Sounding an alarm, he said that RINL was running with only four days stock of iron ore, while the plant required a minimum 10 days stock to operate two blast furnaces and 15 days stock to operate three blast furnaces.
As both RINL and NMDC were under the administrative ambit of the Ministry of Steel, he urged Mr. Scindia to intervene and suggest NMDC to resume supply of iron ore to RINL from Bacheli and Kirandul mines.
As a Central Public Sector Enterprise (CPSE), RINL deserved preferential treatment by NMDC, Mr. Narasimha Rao said.
