There is distinct improvement in the steel market after the imposition of the minimum import price on steel products, and the market is on the recovery path, according to P Madhusudan, Chairman and Managing Director of the Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant.

He was speaking here on Tuesday after inaugurating a solar lighting system in a private home for the aged, installed with CSR funds from the steel plant. He said the off-take improved right after the imposition of MIP and “the demand has picked up. The RINL did very well in February.”

Madhusudan said the worst may be over for the steel sector, but he added, “Still we have to wait and watch as to how long MIP will continue. For RINL, the prospects are certainly brighter as the construction and housing activity in the vicinity of the new capital of the state, Amaravati, is bound to gain momentum. We opened a new office in Vijayawada last month, and are in negotiations with the State government for providing the required steel. We will provide steel at competitive prices.”

Madhusudan said the RINL was also making attempts to get iron ore mines in Kukunuru of West Godavari district in the state. “The State government has already sent the recommendation and we are awaiting the nod from the Union Ministry of Mines. The potential of the mines is projected at 25 million tonnes of high quality ore.”

He said the water supply position in the plant had improved and the State government had also taken steps to provide more water. “But, we have to pass through the summer.”

Related Topics
comment COMMENT NOW