BJP Rajya Sabha member G.V.L. Narasimha Rao has urged Union Minister for Steel Jyotiraditya Scindia to intervene and end the working capital issues being faced by the Visakhapatnam Steel Plant (RINL).
Mr. Narasimha Rao met the Union Minister in New Delhi on Thursday and discussed the financial health of the VSP in detail.
“We discussed non-availability of working material, high raw material cost and adverse market conditions. These issues are adversely impacting the financial health of the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant, which made a net profit of ₹913 crore last fiscal year,” said Mr. Narasimha Rao after the meeting.
In addition to non-availability of working capital, the BJP MP said, huge annual interest burden up to ₹2500 crore, lack of captive iron ore mines, high cost of raw material and vacant management-level positions were hampering the functioning of the steel plant.
He also spoke about the vibrancy of the RINL and how it was a major contributor to the economy of Andhra Pradesh in general and the Visakhapatnam region in particular. “Efficient and successful operation of the Visakhapatnam Steel Plant ought to be a national priority,” said Mr. Narasimha Rao.
Expressing satisfaction over the meeting, he said that the Union Minister assured him that the working capital issues would be resolved soon and the Ministry would make arrangements for the raw material supply to the VSP in advance. This would be done to increase the capacity utilisation of the RINL, he said.