Visakhapatnam: After the successful completion of the modernisation and expansion works, Rashtriya Ispat Nigam Limited (RINL), the flagship company of the Visakhapatnam Steel Plant, registering operating profits and much confident that the company will register net profits during 2018-19.
CMD of RINL P Madhusudan addressing the media in Visakhapatnam on Friday
Addressing a press conference here on Friday, Chairman cum Managnig Director of RINL P Madhusudan said that the company suffered net losses of Rs 900 crore during the past two fiscals.
However, during April 2017 to January 2018, the company successfully reduced the losses and registering the operating profits. With the good market potentiality at both domestic and abroad, the CMD expressed his hope that at the end of this fiscal, the company would come out from the losses.
Talking about the steel production, Madhusudan said that the raw material charges have been increased to Rs 1,000 and at operation level it comes to Rs 1,200. However, by practising saving methods, the company reducing the raw material burden at maximum extent. Still the company was fighting for captive mines in multiple ways, but in vain.
The company and the state government found good quality of iron ore mines in West Godavari district. Both RINL and state government would set up a joint venture to lift the iron ore reserves of 30,000 million tonnes soon. Once the JV was set up, the quality of the ore in West Godavari would be studied further. Initial studies revealed West Godavari brand iron ore is of good quality, the CMD added.
“As a policy, the Central government has decided to withdraw its shares in the company. At present the government is having share of Rs 4,890 crore in which it is decided to privatise 10 per cent shares. The company will get a direct supervision of the shareholders and it will be more accountable, once the shares sold out,” Madhusudan responded on the disinvestment.
During the present fiscal, the RINL successfully exported wire rods and coils to the US. The coastal shipment is one of the biggest significant achievements of the company. The company is planning to sail three more shipment shortly. The sales volume improved by 26 per cent over CPLY which helped the company to clock a sales turnover of over Rs 13,000 crore up to January 2018 in the current fiscal with a growth of 38 per cent.