MOIL announced that the company has two Joint Venture Companies (JV) namely SAIL&MOIL Ferro Alloys (SMFAPL) and RINMOIL Ferro Alloys (RMFAPL).
SMFAPL was formed in 2008 under 50:50 Joint Venture with Steel Authority of India (SAIL). The objective of the JV was to set up Ferro Alloys / Manganese plant at Nandini, Bhilai (C. G.).
Due to reasons including increase in power cost, the operations are not expected to be viable.
Hence, the operations were not started in SMFAPL and as such it has been a dormant
company since its incorporation in 2008.
Since the objective of the JV could not be attainted, it has been decided to close the JVC
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.