Expediting the process for getting captive iron ore mines is a key factor
A tough challenge is ahead for Director (Finance) of Rashtriya Ispat Nigam Ltd. P. Madhusudan, who will take over as the new Chairman-cum-Managing Director of the Navratna company on January 1.
He is a chartered accountant and company secretary, who launched his career as a junior manager in Bhilai Steel Plant in 1983. He was closely associated with the engagement of merchant bankers for managing the IPO of RINL and introducing cost-cutting measures.
The post will fall vacant on December 31 on superannuation of the present incumbent, A.P. Choudhary, on December 31.
As the head of the organisation, Mr. Madhususan has to lead ramping up of the units commissioned under the 6.3 million tonne expansion project and complete the ongoing capital repairs and modernisation of blast furnaces as per schedule. In addition, the project to expand capacity further by four million tonnes with an estimated investment of Rs.22,000 crore has to be taken up under his leadership.Wage revision
Another challenge for him is to initiate early settlement of wage revision. The issue has been figuring in the discussions held for SAIL employees by the National Joint Committee on Steel. RINL follows the NJCS recommendation for SAIL employees. Mr. Madhususan also has to win the confidence of the unions, which have been on the warpath against disinvestment.
The Centre has already decided for 10 per cent dilution of its shares and the IPO process was put on hold on several occasions due to uncertain market conditions.
To take up the next phase of expansion with such a huge amount, listing of the company is a pre-requisite without which mobilisation of funds would be a Herculean task. Expediting the process for getting captive iron ore mines in Rajasthan, Odisha as well as Andhra Pradesh is also a key factor for reducing the production of cost of RINL, which spends more than other steel manufacturers for want of raw material security.