VISAKHAPATNAM: RINL, the corporate entity of Visakhapatnam Steel Plant (VSP), achieved growth of 10-12% in production in the 2018-19 financial year. There has also been an improvement in capacity utilisation of mills and techno-economic parameters.
Speaking to media persons here on Friday, RINL CMD PK Rath said the current financial year was significant for RINL as after three consecutive years of losses it will be earning cash profit. He said they were expecting to end the year with a gross margin of Rs 1,770 crore as against Rs 254 crore last financial year.
All expansion and modernisation facilities have been commissioned and significant progress has been made on all fronts, including production, projects, marketing, materials management and finance. RINL’s sales turnover this fiscal is expected to cross Rs 20,500 crore, highest since its inception, with 9 per cent increase in sales volume.
The steel major will commission its forged wheel factory at Lalganj near Rae Barelli in UP by September 2019, marking its first geographical and product diversification. The firm had signed an agreement with the Indian Railways for setting up this factory in 2013. The unit will make one lakh pieces of wheels, which would be sold to the Railways.
It will be a win-win situation for both Railways and RINL, he said. The Coke Oven Battery- 5 will be commissioned in September this year. Rath said RINL will sign an MoU with KIOCL for setting up a pellet plant under joint venture in Visakhapatnam. RINL is an integrated steel player making long products used in construction, manufacturing and infrastructure. Its products are used in major projects such as Polavaram, Statue of Unity, Rohtang tunnel and Metro Rail projects.
RINL began international operations with the opening of the office at Colombo. VSP has set up another branch at Indore in addition to its existing 25 branches, he said. Talks were going on with the Indian Waterways Authority of India to open outlet at Paandu port near Guwahati and utilise multi-modal coastal-cum-waterways route to the North-East.
Replying to a query on water supply, the CMD said the present water level in KBR 1 (Kaniti balancing reservoir) will last for 17 days. He said with the completion of construction of KBR 2, the water storage capacity will go up to meet the needs for 90 days. He said the RINL signed an agreement with GVMC for setting up 10 mgd treated water plant.
The CMD said they are hopeful of operationalising three mines under OMDC and they were trying to get Supreme Court nod for mining operations in at least two mines. He said the RINL was fully committed to ensure safety and welfare of employees. As part of the CSR activity, it took up a flagship programme under which free education was provided to 1,600 children belonging to BPL families from the surrounding villages of the development.