VSP will breakeven by this year-end: H.D. Kumaraswamy
Visakhapatnam: Union minister of steel H.D. Kumaraswamy forecast that the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), will achieve operational breakeven by the end of this year, overcoming all hurdles. Talking to reporters after visiting the various departments of VSP on Thursday, the union minister said the package announced by the central cabinet for the Visakhapatnam Steel Plant will be rationally implemented. “The third blast furnace will become operational by June or July this year. We will strive to maximise the existing operational processes, utilising the available manpower to the maximum,” Kumaraswamy said, explaining how the breakeven would be achieved. Asked how the steel plant could do so without reliable sources of raw materials, the minister revealed that they are exploring all possibilities, including having captive mines for the VSP. Questioned about the proposals to privatise the steel plant, the union minister maintained that the matter is not of immediate concern, as their primary focus is to revive the steel plant and increase production. He pointed out that RINL had been making profits every year till 2014. It had been listed as one of the Navaratna companies in 2013. The company contributed ₹45,000 crore to the Indian government. Kumaraswamy pointed out that VSP started declining after it spent ₹11,000 crore to expand its capacity to 6.5 million tonnes and raised its production to 7.1 million tonnes. “With no captive mines, the company has felt the burden of expansion,” the union minister conceded. He pointed out that after persistent requests by AP Chief Minister N. Chandrababu Naidu, his son Nara Lokesh and union finance minister Nirmala Seetharaman, an amount of ₹500 crore had been released in the first phase to pay off banks. The union cabinet okayed ₹1,140 crore in the second phase. Kumaraswamy underlined that currently two blast furnaces are running and in December last year, the plant achieved operational breakeven with a daily production of 14,000 tonnes of steel per day. “Now we are thinking how best to utilise the package extended by the union government,” the union minister said. Referring to his meeting with the trade union leaders, he said he convinced them to wait for three more months to get their salaries. Union minister of state for steel Bhupatiraju Srinivas Varma, Lok Sabha members M. Bharat and Kalisetty Appalanaidu, and local MLAs were present.
Visakhapatnam: Union minister of steel H.D. Kumaraswamy forecast that the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), will achieve operational breakeven by the end of this year, overcoming all hurdles.
Talking to reporters after visiting the various departments of VSP on Thursday, the union minister said the package announced by the central cabinet for the Visakhapatnam Steel Plant will be rationally implemented.
“The third blast furnace will become operational by June or July this year. We will strive to maximise the existing operational processes, utilising the available manpower to the maximum,” Kumaraswamy said, explaining how the breakeven would be achieved.
Asked how the steel plant could do so without reliable sources of raw materials, the minister revealed that they are exploring all possibilities, including having captive mines for the VSP.
Questioned about the proposals to privatise the steel plant, the union minister maintained that the matter is not of immediate concern, as their primary focus is to revive the steel plant and increase production. He pointed out that RINL had been making profits every year till 2014. It had been listed as one of the Navaratna companies in 2013. The company contributed ₹45,000 crore to the Indian government.
Kumaraswamy pointed out that VSP started declining after it spent ₹11,000 crore to expand its capacity to 6.5 million tonnes and raised its production to 7.1 million tonnes.
“With no captive mines, the company has felt the burden of expansion,” the union minister conceded.
He pointed out that after persistent requests by AP Chief Minister N. Chandrababu Naidu, his son Nara Lokesh and union finance minister Nirmala Seetharaman, an amount of ₹500 crore had been released in the first phase to pay off banks. The union cabinet okayed ₹1,140 crore in the second phase.
Kumaraswamy underlined that currently two blast furnaces are running and in December last year, the plant achieved operational breakeven with a daily production of 14,000 tonnes of steel per day. “Now we are thinking how best to utilise the package extended by the union government,” the union minister said.
Referring to his meeting with the trade union leaders, he said he convinced them to wait for three more months to get their salaries.
Union minister of state for steel Bhupatiraju Srinivas Varma, Lok Sabha members M. Bharat and Kalisetty Appalanaidu, and local MLAs were present.
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