RINL buys controlling stake in Eastern Investments

Following its strategic control over Bird Group of Companies, Rashtriya Ispat Nigam Limited (RINL) is likely to get 10-15 per cent of its iron ore requirements from the mines owned by Orissa Minerals Development Company (OMDC).

On the acquisition of 51 per cent equity by RINL on Friday in Eastern Investments Ltd (EIL), RINL Chairman-cum-Managing Director P. K. Bishnoi said on Saturday that it would help reduce the production cost of Visakhapatnam Steel Plant (VSP) to some extent.

RINL is the corporate entity of VSP, which does not have captive iron ore mines and depends on NMDC to meet its iron ore requirements. It also does not have its own coking coal mines.

Friday's development, after the Union Ministry of Mines prevailed upon EIL to accept the cheque of Rs. 361.30 crore, is being welcomed by officers and employees of RINL. EIL, part of the Bird Group of Company, is the holding company of OMDC and Bisra Stone Lime Company (BSLC). OMDC mines have about 206 million tonnes of iron ore and 44 million tonnes of manganese.


Mr. Bishnoi told reporters that RINL was now buoyant over the development and was going ahead to acquire coal mines in Australia,

Indonesia and the U.S. through the special purpose vehicle floated with other public sector giants. The company, which was recently conferred Navratna status by the Government, envisages installation of pelletisation plant of about two million tonnes capacity, beneficiation plant, expansion of existing sponge iron unit and power plant. To a question, Mr. Bishnoi said talks were on for finalising the share value of Neelachal Ispat Nigam Limited to acquire it. Neelachal owns captive iron ore mines in Orissa. He said efforts were on to complete the ongoing expansion of VSP as per schedule.

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Printable version | Jan 21, 2021 6:44:24 AM |

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