VISAKHAPATNAM : Union Minister of State for Steel Faggan Singh Kulaste said there has been a fall in liquid steel production at RINL, corporate entity of Visakhapatnam Steel Plant, in the current year due to liquidity constraints. In a written reply to a query on performance of RINL from BJP MP GVL Narasimha Rao in the Rajya Sabha on Monday, he said to increase production, RINL is sourcing iron ore and coal from alternative sources other than the regular sources to ensure increased availability of raw material.
RINL had recorded 68% capacity utilisation in 2022-23 as against 87% in 2021-22. Capacity utilisation of the plant was 71% 2020-21, 79% in 2019-20 and 87% in 2018-19, he informed.
So as to reduce cost of raw material of RINL, the Ministry of Steel has taken up with the Ministry of Coal for supply of domestic coking coal and thermal coal to RINL.
The Ministry of Steel has also requested the State government of Odisha for allotment of iron ore block through reservation route.
In addition, RINL has taken the initiatives from time to time to improve it financial performance, he replied.
Referring to payment of salaries to the employees of RINL, he said the monthly salary is paid on first day of the following month.
However, in September and October, 2023, the salary payment was made in the first week of the following month due to liquidity constraints.
RINL had earned `96.70 crore profit after tax (PAT) in 2018-19 and `913.20 crore PAT in 2021-22 in the last five years, the Union Minister informed.