RINL-Vizag Steel inks pact with Jindal Steel to restart Blast Furnace-3

RINL's MoU with JSPL to restart BF-3, generate additional revenue & reduce losses for Visakhapatnam Steel Plant.

Visakhapatnam Steel Plant (VSP) Chairman and Managing Director Atul Bhatt on Thursday informed that Rashtriya Ispat Nigam Limited (RINL), the government entity that owns VSP, has entered into an MoU with Delhi-based Jindal Steel and Power Limited (JSPL)) for much-needed working capital support to restart and activate the paused Blast Furnace-3 (BF-3) of the steel plant. The blow-in operation of BF-3 with a capacity of two lakh tonnes of hot metal per month will begin from December 30, he added.

Launched in April 2012, BF-3 has been paused since January 2021 due to various issues including lack of raw material and market dynamics. This is an advanced furnace compared to the two other furnaces of the plant. BF-3 was first blown in on April 24 in 2012 and the first tapping was done on April 27.

“This MoU with JSPL will ensure availability of about ₹800 crore to ₹900 crore for RINL in form of working capital advance and raw materials required for consistent operation of BF-3, against which RINL will supply about 90,000 tonnes of cast blooms (semi-finished steel products) every month from Steel Melting Shop-2 (SMS-2) to JSPL,” Mr. Bhatt said.

“This arrangement with JSPL will enable RINL to generate additional revenue from increased sales of about 1 lakh tonnes of saleable steel even after supply of committed quantities (90,000 tonnes) to JSPL. This initiative will result in the monthly increase of sales turnover around ₹500 crores per month and is likely to reduce losses by about ₹50 crore to ₹100 crore per month,” Mr. Bhatt added.

Mr. Bhatt had even held an interactive meeting with the representatives of various trade unions on the plant premises to announce the MoU with JSPL, according to an official release from the plant.

Highlighting the MoU with JSPL, Mr. Bhatt appealed to all trade unions and the entire workforce for their support in ensuring the sustained growth and profitability of RINL.

Clarifying various queries raised by trade unions, Mr. Bhatt said that RINL management is always implementing the best possible initiatives for the sustenance and profitability of RINL, aligning with the interests of all stakeholders.