Vizag Steel Plant inks pact with JSPL for working capital worth Rs 900 crore

22 Dec 2023 , 03:00 PM

The Rashtriya Ispat Nigam Ltd, often known as the Vizag steel mill, has reached an agreement with Jindal Steel and Power Ltd to get an infusion of working capital worth up to Rs 900 crore in order to increase sales revenue, monthly turnover, and reduce losses.

The agreement with JSPL will ensure the availability of approximately Rs 800-900 crore for RINL in the form of working capital advance and raw materials required for the consistent operation of BF – 3, against which RINL will supply approximately 90,000 tonnes of cast blooms every month from RINL’s Steel Melting Shop-2 (SMS-2), said Vizag Steel Plant’s chairman and managing director (CMD) Atul Bhatt in a meeting with trade unions.

The timely agreement allows the steel mill to get raw materials and begin continuous Blast Furnace-3 (BF-3) operations, with the planned blowing-in slated for December 30 at a capacity of two lakh tonnes of hot metal per month, according to an official here on Thursday.

The CMD stated that the transaction will increase sales turnover to roughly Rs 500 crore per month while reducing losses by about Rs 100 crore per month. In light of this agreement, Bhatt urged trade unions to boost output and enlisted the help of the whole workforce to achieve long-term development and profitability.

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