Continuing his efforts and ministerial level intervention to help Visakhapatnam Steel Plant to tide over its raw material and working capital problems, Rajya Sabha MP Shri GVL Narasimha Rao met Shri Pralhad Joshi, Union Minister for Coal and Mines regarding lack of supply of adequate quantity of Coking coal from Bharat Coking Coal Limited (BCCL) and Boiler coal from Mahanadi Coalfields Limited (MCL) – both subsidiaries of public sector Coal India Limited – to Visakhapatnam Steel Plant (RINL) on extended credit to tide over working capital problems.
Submitting a letter and discussing the subject with the Union Minister, MP GVL stated that RINL has suffered severe financial troubles for decades as the public sector steel plant did not have captive coal and iron ore mines resulting in higher cost of production. Stating that it is a legacy problem, MP GVL blamed successive Central and state governments over decades for neglecting the interests of RINL by not allocating captive mines for RINL’s raw material needs. The letter is given below for the benefit of the viewers of www.indianpsu.com –
MP GVL Narasimha Rao informed the Union Minister that the production of RINL has suffered in the recent months due to the non-availability of domestic coal for steel production and high cost of imported coal.
Stating that the RINL procures Prime Coking Coal and Medium Coking coal from Bharat Coking Coal Limited (BCCL) and Boiler coal from Mahanadi Coalfields Limited (MCL), both of which are PSUs and subsidiaries of Coal India Limited, a Central Public Sector Enterprise (CPSE) under Ministry of Coal, MP GVL Narasimha Rao informed Minister that the supply of Coal from these PSUs has been inadequate, erratic leading to under utilisation of capacity by RINL.
MP GVL Narasimha Rao further stated that the RINL has also been facing severe working capital crunch due to rising cost of raw materials, unfavorable market conditions and that the coal PSUs are not offering credit to RINL for its coal requirements.
MP GVL Narasimha Raoinformed Minister that he had raised these issues with Hon’ble Union Minister for Steel Shri Jyotiraditya Scindia who instructed his Ministry to take up relevant actions with concerned ministries.
MP GVL Narasimha Rao requested Minister Shri Pralhad Joshi to prevail upon the PSUs under his Ministry to supply adequate quantity of coal in a timely manner to help RINL ramp up its production and offer it extended credit facility to RINL to tide over working capital problems.
Minister Shri Pralhad Joshi responded positively to MP GVL Narasimha Rao’s request and immediately instructed Ministry’s officers to get the matter examined and assured GVL that he would do everything possible to help RINL with supply of Coal from Coal PSUs.
Commenting on his meeting with Minister for Coal Shri Pralhad Joshi, MP GVL Narasimha Rao stated that his interventions with the concerned Ministers of Steel, Coal and Mines have been very fruitful and hoped that these actions will help RINL to come out of its production and financial problems.