Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), entered into a significant Memorandum of Understanding (MoU) with Jindal Steel and Power Limited (JSPL) during an interactive meeting with trade union representatives today. 

Mr. Atul Bhatt, CMD, RINL, revealed that the MoU aims to secure crucial working capital support for raw material requirements related to the commencement and operation of Blast Furnace-3 (BF-3). The scheduled blowing-in of BF-3 is set for December 30, 2023, with a targeted capacity of producing 2 lakh tonnes of Hot Metal per month.

This collaboration with JSPL is anticipated to provide RINL with approximately Rs 800-900 crore in the form of working capital advance and necessary raw materials for the consistent operation of BF-3. In return, RINL commits to supplying around 90,000 tonnes of cast blooms monthly from Steel Melting Shop-2 (SMS-2). 

This strategic arrangement is expected to generate additional revenue for RINL through increased sales, reaching up to 1 lakh tonnes of saleable steel per month. Consequently, this initiative could lead to a monthly increase in sales turnover by approximately Rs. 500 crores, potentially reducing losses by 50-100 crores.

CMD RINL, Atul Bhatt, urged the support of all trade unions and the entire workforce in fostering sustained growth and profitability for RINL. Responding to queries from trade unions, Mr. Bhatt emphasized that the management is committed to implementing initiatives aligning with the interests of stakeholders.

The reactivation of the 3rd Blast Furnace is positioned as a strategic move to optimize production capabilities, contributing to the overall enhancement of RINL's financial position. Despite challenges, the RINL management remains determined to ensure sustained growth and profitability in a competitive industrial landscape. 

Senior officials, including Sri AK Bagchi, Director (Projects) and additional charge Director (Operations) RINL, Dr. SC Pandey, Director (Personnel) and additional charge Director (Finance) RINL, Sri G. Gandhi, Chief General Manager (HR), were present during the meeting.

RINL's strategic partnership with JSPL marks a critical step towards unlocking its production potential and securing financial stability. By fostering close collaboration with stakeholders and optimizing its operations, RINL positions itself for a stronger future in the competitive steel industry.

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