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Who Is Responsible For Vishaka Steel Plant Losses? Published by GulteDesk February 12, 2021
The government of India has decided to privatise Rastriya Ispat nigam Limited (RINL), the corporate entity of Visakhapatnam steel plant quoting losses. But, the policies of the government are essentially responsible for the fiscal travails of the steel plant.
The absence of a captive mine for this premier public sector company deprived it a level playing field vis a vis other players in the steel industry both in the public and private sectors. Currently the RINL is purchasing iron ore from NMDC Bailadila mines at market price. This has put the RINL at a cost disadvantage of around 5,260 per metric tonne of steel (at ore level). Many of its competitors have captive mines for more than 60 percent of their requirement and buy only the rest from NMDC. This excess cost of iron ore has cost implications of more than3,472 crores for RINL.