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Kohinoor Mandal

"We have already repaid the loans taken from all banks and FIs such as UTI and LIC. At present, RINL Bonds worth Rs 100 crore are pending and that it would be paid back now," official sources said.

Kolkata , Sept. 9

CENTRAL public sector unit, Vizag Steel, belonging to Rashtriya Ispat Nigam Ltd (RINL), will become debt-free by the end of this month.

According to company sources, Vizag Steel started the current financial year 2003-04, with a total debt exposure of Rs 773 crore. By the end of August, this came down to Rs 673 crore and the remaining Rs 100 crore would be paid back during this month.

"We have already repaid the loans taken from all banks and financial institutions like UTI and LIC. At present, RINL Bonds worth Rs 100 crore are pending and that it would be paid back now," official sources told Business Line.

It may be noted that in 2001-02, RINL's total interest outgo was Rs 200 crore. It was reduced to Rs 160 crore in 2002-03.

The company has decided that the ongoing installation of the fourth cove oven battery would be funded through internal accruals. The cost of this project is Rs 320 crore.

Meanwhile, RINL is continuing to excel in the current bullish steel market. For the period April-August 2003-04, it has registered a 27.36 per cent increase in turnover to Rs 2127 crore compared to Rs 1670 crore in 2002-03.

Similarly, exports during this period increased by 20.49 per cent to Rs 247 crore from Rs 205 crore.

Net profit for the period April-July 2003-04 was Rs 267 crore. In 2002-03, RINL's turnover and net profit was Rs 5059 crore and Rs 520 crore respectively. For the current financial year, it is expecting a net profit of more than Rs 800 crore.

"If we consider the profits that we have already registered and the current boom in the domestic and global steel market, we are confident of reaching the Rs 1,000 crore net profit mark this year. Vizag Steel would become a cash rich company", sources said.

RINL has been exporting to countries like Indonesia, Japan, Korea, Malaysia, Thailand, Vietnam, Nepal, Bangladesh, the US and, of course, China. The export items are mostly TMT bars and wire rods.

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