Categories: News/City Updates

Visakhapatnam Steel Plant takes a blow, faces iron ore shortage

The Rashtriya Ispat Nigam Limited (RINL), the corporate entity overseeing the Visakhapatnam Steel Plant (VSP), faces a pressing crisis- a severe iron ore shortage lasting just four days. This arises from NMDC’s reduced iron ore supply to RINL, prompting the latter to source from Karnataka, adding a financial strain to the debt-laden steel plant.

Transporting iron ore now costs RINL an extra Rs 1,000 per tonne. Katam Chandra Rao, President of the Steel Executives Association, asserts that NMDC’s decision will hinder the steel plant, which readies its third blast furnace this month. Blocks No 5 and 5A at the Bailadila mines were reserved for RINL, and it’s unjust for a public sector enterprise like NMDC to favour private players.

Union leader Adinarayana highlights an existing agreement for 7 million tonnes of iron ore from the government, but NMDC supplies just two to three rakes daily, far less than the usual six to eight.

Also read: Visakhapatnam Steel Plant seeks bank loans for working capital

Meanwhile, BJP MP GVL Narasimha Rao wrote to Union Steel Minister Jyotiraditya Scindia regarding the shortage of iron ore at the Visakhapatnam Steel Plant. He appealed to the Union Minister to intervene and restore the iron ore supply from the Bacheli and Kirandul mines in Chhattisgarh. RINL’s crucial role as Andhra Pradesh’s largest industrial enterprise impacts the state’s industrial economy and the livelihoods of countless families.

Stay tuned to Yo! Vizag website and Instagram for more city news updates.

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