RINL registers 14% growth in Q1 steel output

Our Bureau Updated - July 03, 2013 at 09:10 PM.

Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) has recorded growth of 14 per cent in finished steel production in the first quarter and stepped up its captive power generation by 7 per cent, according to a press release.

The value-added steel production was the best for any first quarter with a growth of 17 per cent, accounting for nearly 80 per cent of total saleable steel production.

In spite of recessionary trends in the market, RINL registered a growth of 13 per cent in sales and the special drive taken up by the company helped it to end Q1 with a sales of 5.5 lakh tonnes, matching the sales of the corresponding period last year.

The proportion of special steel sales in the total saleable steel stood at 82 per cent during the quarter, compared to 77 per cent of the corresponding period last year. The focus on the rural marketing network helped in enhancing the number of rural dealers to over 600 currently, adds the release.

RINL registered growth in June in many areas, significant among them being iron and steel production 29 per cent; captive power generation 16 per cent; value-added steel sales 21 per cent despite sluggish market conditions. The hot metal production is the best for June since inception with production from the new blast furnace touching 1.4 mt.

The new sinter plant was commissioned in June which would further help in stepping up the production from the new blast furnace. To enhance the captive power generation, boiler-6 was commissioned in the month.

RINL inks MoU with MECL : In another release, the RINL stated on Wednesday that it had signed a memorandum of understanding with Mineral Exploration Corporation Ltd (MECL) for exploration of iron ore, coal and other minerals. The MoU was signed by A.V. Hariharan, the DGM (Projects), Mines, from the RINL and S.K. Sarkar, head of business development from the MECL.

RINL has taken quick action within a month on receipt of LOI for iron ore block in Bhilwara from the Government of Rajasthan, states the release. RINL has the experience of operating its captive mines for limestone, dolomite and manganese and is now entering into operation of iron ore mines.

The MoU is primarily to utilise the expertise of MECL for exploration of iron ore mines in Bhilwara district in Rajasthan and for exploration of mines anticipated to be allocated shortly - another block in Rajasthan and some blocks in Andhra Pradesh and Jharkhand. The MoU also envisages exploration for thermal and coking coal blocks to be allotted to the RINL in the near future.

sarma.rs@thehindu.co.in

Published on July 3, 2013 11:30