VISAKHAPATNAM: The demand for allowing allow SAIL to participate in EoI is growing louder. The steel giants in the private sector such as JSW who filed Expressions of Interest (EoIs) for RINL have reportedly laid down certain conditions. The JSW reportedly wanted in lieu of working capital, the steel should be supplied of their brands.
According to former members of All India Steel Consumer Council Varasala Srinivasa Rao, this will be detrimental to the interests of the RINL as the private players who are competitors will capture the RINL market. “Panther of JSW is fast moving product. Besides, since it has own mines, the prices of JSW products are less than the products of RINL. Still, VSP of RINL is a monopoly in the market because of its quality,” he said.
“The RINL sale was now around 55,000 to one lakh tonnes in AP from Itchapuram to Tada.”
“However, the JSW has shown interest to give raw material and working capital to the steel plant. It wanted to operate the two rolling mills in the plant to get its brand products including domestic steel products,” he added. “In this way, the JSW will capture the RINL share in the AP market. Visakha Ukku Parirakshana Porata Committee has also appealed to Faggan Singh Kulaste to allow SAIL to participate in EoI as it will be mutually beneficial.”
Steel Executives’ Association (SEA) of Rashtriya Ispat Nigam Limited has renewed its plea to the steel ministry to issue necessary directions to SAIL to participate in bid in EoI given by RINL for providing working capital/raw materials against supply of steel by RINL.