GVL writes to Steel Ministry seeking ore to Vizag steel plant from Chhattisgarh mines
The Hindu
MP G.V.L. Narsimha Rao requests Steel Minister to supply iron ore to RINL-Vizag Steel Plant from NMDC's Bacheli and Kirandol mines. RINL is largest industrial enterprise in AP, impacting livelihoods of lakhs. Steel Minister provided relief earlier. NMDC now asking RINL to receive ore from Karnataka, incurring extra cost. Request to intervene and suggest NMDC to resume supply from Bacheli and Kirandol. RINL deserves preferential treatment over private steel producers.
In a letter to Union Minister for Steel Jyotiraditya Scinda, BJP’s Rajya Sabha MP G.V.L. Narsimha Rao on Friday requested that the Ministry should take immediate steps for supplying iron ore to Rashtriya Ispat Nigam Limited (RINL)- Visakhapatnam Steel Plant from NMDC’s Bacheli and Kirandol mines in Chhattisgarh.
RINL was the largest industrial enterprise in Andhra Pradesh and its performance had a significant effect on the industrial economy of the State, and the livelihood of lakhs of families in and around Visakhapatnam, he said.
Mr. Rao thanked the Steel Minister for providing some relief earlier to RINL in the form of working capital from banks based on his requests and parliamentary interventions earlier.
He highlighted the problem being faced by RINL regarding supply of iron ore from NMDC Limited, another Central Public Sector Enterprise (CPSE) under the Steel Ministry. He stated that since RINL’s inception, NMDC had been supplying iron ore fines, lump and sized ore from Bailadilla (Bacheli and Kirandol) mines in Chhattisgarh till a few months ago. These were the nearest and best quality iron ore mines at a distance of 560 km from Visakhapatnam.
“As most of the iron ore from Bacheli and Kirandol mines is being supplied to private steel producers, NMDC has now asked RINL to receive most of its iron ore requirements from its mines in Karnataka, which is more than 900 km away from Visakhapatnam, resulting in an additional expenditure of around ₹800 per ton on account of transportation,” the MP mentioned.
Sounding an alarm, he said at present RINL is running with only four days stock of iron ore, while the plant requires a minimum 10 days of stock even to operate two blast furnaces and 15 days of stock to operate three.
As both RINL and NMDC are under the administrative ambit of the Ministry of Steel, Mr. Rao urged Mr. Scindia to intervene and suggest to NMDC to resume supply of iron ore from Bacheli and Kirandol.
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