Visakhapatnam: VSWU demands intervention of Union Minister in supply of iron ore

Visakhapatnam: Visakha Steel Workers Union (VSWU) of RINL appealed to Minister of Steel Jyotiraditya M Scindia to intervene in the supply of iron ore from Bailadila and Bacheli mines of NMDC by dashing a letter to him.

Bringing the supply of iron ore to the Union Minister’s notice and requesting for immediate favourable action for sustainability of the RINL, the union representatives said that a study was conducted on coordination of the programme of export iron ore with the requirements of the steel industry by the committee constituted in 1971 by the Ministry of Steel then.

In line with the recommendations made by the committee, the Government of India approved the supply of iron ore to RINL exclusively earmarked iron ore deposits in Bailadila/Bacheli area of NMDC in Chhattisgarh state on a cost to cost basis. It was also mentioned in the approval that the NMDC may export the iron ore only after fulfilling the requirement of RINL, they stated.

Considering the quality and quantity of iron ore assured from Bailadila/Bacheli deposits of NMDC, Visakhapatnam Steel Plant has been established by RINL with an annual capacity of 3.0 MTPA. Subsequently, a dedicated railway line was also laid between Kothavalasa and Kirandul (KK line) for transportation of the iron ore. However, general secretary of the union D Adinarayana mentioned in the letter that the NMDC is not supplying sufficient quantities of iron ore from Bailadila/ Bacheli mines as committed and insisted RINL to take iron ore from Donimalai mines located in Karnataka state.

This, he said, incurs higher logistics cost. It is also understood that NMDC is selling iron ore to the private steel producers, who are competitors to RINL, in the market. Adinarayana stated that it was an injustice meted out to the RINL.

He expressed concern that RINL could not operate the plant even at 60 percent of its capacity due to shortage of iron ore and requested the Union Minister to intervene and settle the issue for the larger benefit of the plant.