RINL signs MoU with JSPL

Visakhapatnam: CMD of RINL Atul Bhatt informed that Visakhapatnam Steel Plant has successfully entered into a MoU with Jindal Steel and Power Limited (JSPL) for ensuring needed working capital support for raw material requirement for starting and operating the Blast Furnace-3 (BF-3).

At an interactive meeting held with representatives of various trade unions at a conference hall of RINL here on Thursday, the CMD mentioned that the BF-3 is planned for blowing-in on December 30 at a capacity of 2 lakh tonnes of hot metal per month. The arrangement with JSPL will ensure availability of about Rs 800 to 900 crore for RINL in the form of working capital advance / raw materials required for consistent operation of BF-3, against which RINL will be supplying about 90,000 tonnes of cast blooms every month from Steel Melting Shop-2(SMS-2) of RINL.

The arrangement will enable RINL to generate additional revenue from increased sales of about 1 lakh tonnes of saleable steel even after supply of committed quantities to JSPL.

This initiative will result in the monthly increase of sales turnover around Rs 500 crore per month and is likely to reduce losses to the tune of Rs 50 to100 crore per month.