VSP to shift vessels laden with imported coal stuck at Gangavaram port to Vizag port

The VSP plans to apply for a commodity loan of 50,000 tonnes of coal from alternate ports, apart from floating a global tender for emergency procurement of 1.5 lakh tonnes of coal to deal with the short supply of raw material

In an attempt to mitigate the short supply of coking coal due to the delay in the release of the imported coal from Adani Gangavaram Port Limited (AGPL), the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), has decided to divert the coal-laden ships anchored at the AGPL to the Visakhapatnam Port Authority (VPA), a PSU major port.

The VSP is also planning to apply for a commodity loan of 50,000 tonnes of coal from alternate ports, apart from floating a global tender for emergency procurement of 1.5 lakh tonnes of coal to tide over the crisis.

Two vessels carrying approximately 1.5 lakh tonnes of coking coal are waiting for the berthing instructions at the AGPL. The materials on board are urgently required at the VSP to maintain the continuity of production. Further delay in berthing the vessel and transfer of the cargo will jeopardise the production at the VSP, bringing the units to a grinding halt, said an official release from the RINL on April 18 (Thursday).

“We are pursuing alternative solutions to secure coal, a crucial raw material for safe and sustained operations, amid severe disruptions stemming from the agitation by workers at the AGPL. The agitation has disrupted the coal supply, posing a formidable challenge to production at the VSP,” the release quoted RINL CMD Atul Bhatt as saying.

The RINL is facing a critical situation as operations at the AGPL have been halted since April 12. The VSP is heavily dependent on the AGPL’s services for handling imported raw material including coking coal and limestone.

“Given the severity of the situation, the RINL has sought the help of the Visakhapatnam district administration to restore operations at the AGPL without delay to ensure safe and sustained operations at the RINL. We urged the administration to help the RINL shift approximately 2.2 lakh tonnes of coal, which is already in the AGPL,” Mr. Bhatt said.