Vizag steel plant faces iron ore crisis, BJP MP writes to Union Minister
The problem has arisen due to reduction in supply of iron ore from NMDC to RINL.
VISAKHAPATNAM: RINL, corporate entity of Visakhapatnam Steel Plant (VSP), is now facing a fresh crisis due to shortage of iron ore, which will be hardly enough for four days. The problem has arisen due to reduction in supply of iron ore from NMDC to RINL. This has forced RINL to procure iron ore from Karnataka. Besides delay in transport, this will put extra financial burden on the already debt-ridden steel plant.
RINL has to spend at least Rs 1,000 more on each tonne of iron ore for transportation. Steel Executives Association president Katam Chandra Rao said, “The NMDC’s decision will impact the steel plant, which is gearing up for recommissioning its third blast furnace this month.” In fact, block No 5 and 5A at Bailadila mines are meant for RINL. “It is not correct for NMDC, a PSE, to favour private players at the cost of another PSE,” he felt.
Steel plant union leader Adinarayana mentioned that there was an agreement with the government for the supply of 7 million tonnes of iron ore. However, there is a short supply in ore from NMDC as it is supplying two to three rakes against the normal six to eight a day, he said.
Meanwhile, BJP MP GVL Narasimha Rao has written to Union Steel Minister Jyotiraditya Scindia seeking his intervention to save the steel plant from crisis and restore the supply of iron ore from Bacheli and Kirandul mines in Chhattisgarh. In a letter to the Union Minister, the MP said, “RINL is the largest industrial enterprise in AP and its performance has a significant effect on the industrial economy of State. RINL’s performance impacts the livelihood of lakhs of families in the State.