BJP MP Narasimha Rao writes to Jyotiraditya Scindia for supply of iron ore to Vizag steel plant from Chhattisgarh
Sep 08, 2023
New Delhi [India], September 8 : Bharatiya Janata Party Rajya Sabha MP GVL Narasimha Rao has written to Union Minister for Steel Jyotiraditya Scindia requesting the restoration of supply of iron ore to Rashtriya Ispat Nigam Limited (RINL) Visakhapatnam from NMDC's Bacheli and Kirandol mines in Chhattisgarh.
As both RINL and NMDC are under the administrative ambit of the Ministry of Steel, Rao urged Scindia to intervene and suggest to NMDC to resume the supply of iron ore from Bacheli and Kirandol mines in Chhattisgarh, the letter read.
Rao said that at present, RINL is running with only four days of stock of iron ore, while the plant requires a minimum of 10 days of stock even to operate two blast furnaces and 15 days of stock to operate three blast furnaces.
Stating that the RINL is the largest industrial enterprise in Andhra Pradesh and its performance has a significant effect on the industrial economy of Andhra Pradesh, Rao said that RINL’s performance impacts livelihoods of lakhs of families in and around Visakhapatnam.
In his letter, Rao hanked the Steel Minister for providing some relief earlier to the RINL in the form of working capital from banks based on his requests and parliamentary interventions earlier.
In his letter, Rao highlighted the problem being faced by the RINL regarding the supply of iron ore from NMDC Limited, another Central public sector enterprise under the Steel Ministry.
He stated that since RINL's inception, NMDC has been supplying iron ore fines, lump and sized ore from Bailadilla (Bacheli and Kirandol) mines in Chhattisgarh to RINL till a few months ago. "These are the nearest and best quality iron ore mines at a distance of 560 kms from Visakhapatnam," Rao stated in his letter addressed to Jyotiraditya Scindia.
"As most of the iron ore from Bacheli and Kirandol mines is being supplied to private steel producers, NMDC has now asked RINL to receive most of its iron ore requirements from its mines in Karnataka which is more than 900 km away from Visakhapatnam resulting in an additional expenditure of around Rs 800 per ton on account of transportation," stated the letter.
As a Central Public Sector Enterprise (CPSE), the RINL deserves preferential treatment by NMDC, another CPSE and not negative discrimination in comparison to private steel producers, Rao said in his letter.
