Visakhapatnam Steel Plant incurring losses from 2014-2015: Union minister Ram Chandra Prasad Singh

In the subsequent three financial years, it posted a profit of Rs 353 crore, Rs 366 crore and Rs 62 respectively.

Published: 05th April 2022 08:42 AM  |   Last Updated: 05th April 2022 08:42 AM   |  A+A-

Vizag steel plant

Vizag steel plant

By Express News Service

VIJAYAWADA: Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, has recorded its second-highest turnover of Rs 17,980 crore in 2020-21, Minister for Steel Ram Chandra Prasad Singh informed the Rajya Sabha on Monday.

In a written reply to a query by YSRC MP V Vijaya Sai Reddy, he stated that the audited figures RINL performance in 2021-22 have not been published. RINL posted a net loss of Rs 789 crore in 2020-21. RINL earned profits from 2011-12 to 2014-15. It registered a profit of Rs 751 crore in 2011-12. In the subsequent three financial years, it posted a profit of Rs 353 crore, Rs 366 crore and Rs 62 respectively.

Thereafter, RINL had started incurring losses. It incurred a net loss of Rs 1,421 crore in 2014-15, and Rs 1,263 crore and Rs 1,369 crore in subsequent two financial years. In 2018-19, it posted a profit of Rs 97 crore and in subsequent two financial years, it incurred a loss of Rs 3,910 crore and Rs 789 crore, respectively, the minister stated.  

"The Ministry of Steel has been pursuing allotment and sourcing of mines and raw materials with all the concerned. Further, RINL can participate in the auction process for allotment of coal mines conducted by the Ministry of Coal," Singh said.

In reply to a question posed by YSRC MP Vemireddy Prabhakar Reddy, Minister for Coal Pralhad Joshi said coal is provided to steel, power and other companies in the public sector through linkage, e-auction and state nominated agency.  

Rabodih OCP coal mine was allotted to RINL in accordance with Section 5(1) of the coal mines (special provisions) rules, 2014 for production of iron and steel.

Subsequent to the Cabinet Committee on Economic Affairs' in-principle approval to strategic sale of Government of India's existing 100 per cent paid up equity shareholding in RINL, allotment of Rabodih OCP mine has been cancelled.

The coal mine has been offered in auction for the purpose of sale of coal and three technically qualified bids have been received. RINL can participate in the auction for allocation of coal mines as conducted by the nominated authority. 



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