Visakhapatnam: Another oxygen plant at RINL to be readied soon

An oxygen plant at RINL in Visakhapatnam
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An oxygen plant at RINL in Visakhapatnam

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Visakhapatnam: Apart from the existing oxygen plant at Rashtriya Ispat Nigam Limited (RINL), another plant is going to be operational soon. Earlier, RI...

Visakhapatnam: Apart from the existing oxygen plant at Rashtriya Ispat Nigam Limited (RINL), another plant is going to be operational soon. Earlier, RINL awarded a contract to Air Liquide India Holding Pvt Ltd (ALIH) for setting up a 2 x 850 TPD oxygen plant on build, own, operate (BOO) basis. It was scheduled for completion in 2013.

Though the plant erection was completed by February 2013, the trial runs did not start due to contractual dispute between RINL and ALIH on certain terms and conditions. Meanwhile, ALIH unilaterally terminated the contract in December 2014.

As ALIH has reneged on their BOO commitment, RINL invoked Arbitration in 2017. The Arbitral Tribunal (AT) in its award on April 2, 2021 directed ALIH to commence commission of the plant by May 1 and RINL will take over the plant as per the price to be determined by the Tribunal on book value basis.

In response, ALIH has sought an interim relief from the Tribunal, demanding a progressive payment of Rs 85 crore for commencement of commissioning and certain other commercial conditions. RINL agreed for the relief sought by ALIH and requested them to commence commissioning of the Plant by May 1, as directed by the Arbitral Tribunal.

However, during the Arbitration proceedings, ALIH indicated that it takes about three months for completing the health check of the equipment (which was erected about eight years back) and 6 to 7 months for commencement of production. Following which, RINL is stressing on the urgent need to hasten the process of commissioning.

In a statement released by RINL, it was mentioned that of the 1,700 tonnes per day, 100 tonnes of liquid oxygen alone can be produced a day from the ASP BOO plant.

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