GVL raises operational and raw material problems of VSP in Rajya Sabha
The Hindu
Union Minister blames high operational cost and lower net sales realisation, working capital deficit and adverse market conditions for steel products for the loses incurred by the plant
Bharatiya Janata Party (BJP) MP G.V.L. Narasimha Rao raised the issue pertaining to operational and raw material problems being faced by the Visakhapatnam Steel Plant (VSP) with Union Minister of State for Steel Faggan Singh Kulaste in the Rajya Sabha on December 12 (Monday).
In response to the questions about the reasons for the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the VSP, incurring losses this year while it made good profits last year, Mr. Faggan Singh attributed it to the high operational cost and lower net sales realisation, high raw material cost, increased cost of debt servicing, working capital deficit and adverse domestic and international market conditions for steel products.
On whether the Central government would help the RINL to obtain captive iron ore mines to reduce its raw material cost, the Minister of State said that the RINL had requested State governments such as Odisha, Chhattisgarh and Andhra Pradesh for recommending reservation of iron ore deposit under 17(2A) of the MMDR Act, 2015 to the Ministry of Mines, Government of India. He added that the Ministry of Steel had also requested Government of Odisha for reservation of an iron ore block in favour of the RINL
On the steps taken to help the RINL tide over working capital problems, the Minister said that the issues of working capital crunch and high interest burden have been taken up by the RINL with the banks concerned.
Speaking to the media after the Parliament session, Mr. Narasimha Rao said that he would continue to make efforts to help improve the functioning of the RINL.
he Tamil Nadu Government will take appropriate decision to protect the welfare and livelihood of Manjolai tea estate workers as Bombay Burmah Trading Corporation, which is managing the tea gardens for the past 90-odd years, is about to wind up its operations in near future, Speaker M. Appavu has said.