BJP MP GVL Narasimha Rao meets Jyotiraditya Scindia over funds crunch in RINL
Feb 09, 2023
New Delhi [India], February 9 : BJP Rajya Sabha MP GVL Narasimha Rao on Wednesday called on Union Steel minister Jyotiraditya Scindia and Steel Secretary Nagendra Nath Sinha. During the meeting, the MP raised several issues, including severe working capital crunch faced by the Rashtriya Ispat Nigam Limited (RINL), and adverse market conditions.
According to sources, Rao informed the Union minister that the issues have resulted in lower capacity utilisation of RIPL this year and poor financial performance of the company.
Banks have not been extending loans to RINL due to the low credit rating, the BJP MP informed the minister and the Steel secetary, adding that the rate of interest charged to RINL by banks is significantly higher than market lending rates.
He informed further that only two of the three blast furnaces in RINL are operational, and funds are required for arranging oxygen supply to operationalise the third furnace and ncrease its production substantially.
Rao told his fellow party colleague that the employee morale is low as the wage revision for workers in RINL has not been done since 2017. This despite an MoU signed between the management and employee unions on April 6, 2022, he added.
He said the promotion of executives has been also been held up.
Seeking urgent intervention and assistance for sufficient availability of working capital, the BJP MP urged the Union minister to allow the sale of the 'forged wheel plant at Rae Bareli" and 22-acre plot in Visakhapatnam city for RINL's immediate working capital needs.
Making a strong case for a stronger impetus and infusion of funds, Rao sought urgent interventions to ensure that the RINL becomes fully operational. Stating that RINL is the largest industrial unit in Andhra Pradesh, the MP added that its performance is vital to the state's economy and the livelihoods of over one lakh families.
The MP had earlier written to the Union Minister and the Steel secretary asking them to advise the RINL Board to clear the pending issue of executive promotions.
