Vizag Steel Plant, also known as Rashtriya Ispat Nigam Ltd, has entered into an agreement with Jindal Steel and Power Ltd to receive an investment of working capital amounting to Rs 900 crore. The aim of this agreement is to boost sales revenue, increase monthly turnover, and reduce losses. Vizag Steel Plant, a subsidiary of Rashtriya Ispat Nigam Ltd, is known for its high-quality steel products, contributing extensively to the Indian steel industry. Jindal Steel and Power Ltd (JSPL), on the other hand, is one of the leading private-sector steel manufacturers, operating in diverse steel plants across India.
JSPL focuses on producing eco-friendly steel and emphasizing technological advancements and responsible production practices. Both entities play crucial roles in India’s steel sector, emphasizing quality, innovation, and growth. Facilitated by this timely agreement, the steel plant can acquire raw materials and initiate uninterrupted operations of Blast Furnace-3 (BF-3). Officials mentioned that the planned blowing-in, slated for December 30, is anticipated to operate at a capacity of two lakh tonnes of hot metal monthly.
During a gathering with trade unions, Atul Bhatt, the Chairman and Managing Director (CMD) of Vizag Steel Plant conveyed the statement, “The arrangement with JSPL will ensure availability of about Rs 800 -900 crore for RINL in the form of working capital advance and raw materials required for consistent operation of BF – 3, against which RINL will be supplying about 90,000 tonnes of cast blooms every month from Steel Melting Shop-2 (SMS-2) of RINL.”
As per Bhatt, partnering with New Delhi-based JSPL will enable Vizag Steel Plant to boost revenue by selling an extra 100,000 tonnes, even after meeting JSPL’s agreed supply. The CMD highlighted that this collaboration could elevate monthly turnover to approximately Rs 500 crore and trim losses by roughly Rs 100 crore. With this agreement in place, Bhatt urged trade unions to ramp up production and sought full support from the entire workforce to sustain growth and ensure profitability.
Moreover, he addressed numerous inquiries from the trade unions and guaranteed them that the management of the steel plant would be implementing first-rate strategies to ensure its sustainability and profitability. Emphasizing the activation of BF-3 as a tactical maneuver, he highlighted its role in enhancing production capacities, eventually helping to strengthen the steel plant’s financial standing. The initiation of BF-3 activation is strategically planned to enhance production capabilities, aiming to contribute significantly to the overall financial enhancement of the steel plant.
