The Hindu Business Line : RINL sales turnover up 32% at Rs 3,358 cr in H1

THE sales turnover of Rashtriya Ispat Nigam Ltd (RINL) was Rs 3,358 crore during the first half of the fiscal, posting a growth of 32 per cent over last year, according to Mr C. Appa Rao, acting Chairman and Managing Director.

Reviewing the performance of the steel plant during the six months at a press meet here on Thursday, Mr Appa Rao said domestic sales amounted to Rs 3,263 crore and exports were Rs 95 crore during the period.

"Exports have been restricted to meet the growing requirements of the domestic market,'' he said.

The plant produced 1.821 million tonnes of hot metal, 1.737 million tonnes of liquid steel and 1.543 million tonnes of saleable steel during the first half, besides 4.3 lakh tonnes of special steels.

All production units continued to perform well beyond rated capacities ranging from 107 per cent to 123 per cent, he said.

In spite of the constraints on the raw material front in the first quarter, Mr Appa Rao said RINL had performed exceedingly well.

He said the steel plant was persisting with its efforts to acquire captive iron ore mines, and "is also contemplating a joint effort with National Mineral Development Corporation to overcome the problem."

Referring to the coking coal situation, Mr Appa Rao said there was no problem now, as the plant had entered into long-term contracts with three companies in Australia, "but the pricing issue is still problematic."

He said, RINL, like other steel plants, had reduced prices by Rs 1,000 per tonne but its financials position was still sound.

"We have become a zero-debt company and are confident of wiping out the accumulated losses of Rs 2,900 crore by March 2006," he said.

Referring to the global market, Mr Appa Rao said the total production was rising and it might cross the billion-tonne mark this fiscal.

He said gas from the Krishna-Godavari basin might be made available to the plant by 2006 or so.

"No technological upgradation is required to make use of the natural gas and it will immensely improve our productivity," he said.

Mr Appa Rao said the Godavari water scheme had been completed and Godavari water would be made available to the plant through the Yeleru canal shortly.

"Only the canal has to be strengthened further and the State Government is working on it."