Vizag Steel Plant, also known as Rashtriya Ispat Nigam, has entered into a strategic agreement with Jindal Steel and Power to secure a working capital infusion of up to Rs 900 crore. The objective is to boost sales revenue, increase monthly turnover, and reduce losses. This timely collaboration allows the steel plant to procure essential raw materials and commence consistent operations of Blast Furnace-3 (BF-3), scheduled for a planned blowing-in on December 30, with a capacity of two lakh tonnes of hot metal per month, as announced by an official on December 21.

During a meeting with trade unions, Vizag Steel Plant's Chairman and Managing Director (CMD), Atul Bhatt, emphasised that the deal with JSPL ensures an infusion of about Rs 800-900 crore as working capital advance and raw materials for the continuous operation of BF-3. In return, RINL will supply approximately 90,000 tonnes of cast blooms every month from Steel Melting Shop-2 (SMS-2). Bhatt highlighted that this collaboration with JSPL positions Vizag Steel Plant to generate additional revenue through increased sales of about one lakh tonnes, even beyond the committed quantity to JSPL.

Bhatt further explained that the agreement is expected to elevate the sales turnover to approximately Rs 500 crore per month and reduce losses by around Rs 100 crore per month. In light of this development, he urged the trade unions to boost production and sought the entire workforce's support to ensure sustained growth and profitability.

Addressing queries from trade unions, Bhatt assured them that the steel plant's management is implementing the best initiatives for its sustainability and profitability. The activation of BF-3 is considered a strategic move to optimise production capabilities, contributing to the overall enhancement of the steel plant's financial position, he added.

Source: Money Control