The Hindu Business Line : Concern over stock pile-up with RINL

The Union Government should go to the rescue of the Rashtriya Ispat Nigam Ltd (the steel plant here) stuck with an inventory of more than seven lakh tonnes of steel and products, “due to the short-sighted policies of the management”, according to Mr V. Srinivasa Rao, the Vice-President of the recognised union.

He met the Union Steel Minister, Mr Ram Vilas Paswan, on Saturday in New Delhi and submitted a memorandum, the copy of which was released here also. In the memorandum, the union leader urged the minister to formulate a new customer policy to enable the steel plant to liquidate its stocks.

The union leader complained to the minister that during the three months (May, June and July, 2008) the Union Government had instructed the public sector steel plants to keep the prices in check. “At that time, the prices of steel were above Rs 50,000 per tonne and the RINL management cut down on sales, in response to the directive of the Union Government. As a result, the plant lost Rs 900 crore, and there should be a comprehensive probe into the act of the RINL officials,” he pleaded with the minister.

Further, he complained, the management did not show any foresight or react to the market situation when the prices started falling later in September-October and “as a result the plant is stuck with a huge inventory now”.

The marketing officials of the RINL showed no insight into the market when recession gripped it and “the plant is paying dearly for it now”.

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