SynopsisThe financially troubled Rashtriya Ispat Nigam Limited, is considering leasing 1,400 acres of its land to the National Mineral Development Corporation to generate working capital. NMDC has proposed to establish a pellets plant and stock yard on this land. While the move could ease RINL's financial strain and reduce transportation costs, some fear it may be a step towards the plant's privatization, a move contested by its workforce for several years.Article Amidst financial difficulties, the Visakhapatnam Steel Plant, popularly known as Rashtriya Ispat Nigam Limited, is contemplating a significant decision. RINL is exploring the possibility of leasing approximately 1,400 acres of its land to the National Mineral Development Corporation. This move is aimed at bolstering RINL's working capital, which has been under strain due to its financial woes.RINL is nestled on a sprawling land bank of 19,730 acres in Gajuwaka, Visakhapatnam. Of this vast expanse, 11,000 acres house the steel plant itself, with an additional 500 acres allocated for a residential township for plant employees. Another 500 acres are dedicated to reservoirs for water storage to support plant operations.The proposal under consideration involves NMDC leasing 1,400 acres of land, strategically located between the steel plant and Gangavaram port. NMDC intends to utilize this land for establishing a pellets plant and a stock yard. Discussions regarding this proposition began during the visit of Union steel secretary Nagendra Nath Sinha to the steel plant on August 21, and these discussions have progressed considerably.The terms of the lease offer a substantial financial boost to RINL. NMDC has put forward an upfront payment of ₹1,500 crore for the land, in addition to an annual lease amount of ₹70 crore for a duration of 33 years. This infusion of funds is expected to alleviate some of RINL's immediate working capital requirements.Moreover, the pellets produced by NMDC on this land are envisioned to serve as raw material for the steel plant. Currently, RINL imports this iron ore raw material from Kirandul and Bacheli in Chhattisgarh. The proximity of the proposed plant to RINL's facilities would lead to significant cost savings in transportation.While the move to lease land to NMDC has not been met with outright opposition from trade union leaders, there are concerns that it might be part of a broader plan to privatize the Visakhapatnam Steel Plant. The workforce, comprising approximately 17,000 employees, has steadfastly resisted such privatization efforts for nearly three years.Conclusion,The leasing of land to NMDC is a pivotal development in the ongoing saga of the Visakhapatnam Steel Plant. It offers potential financial relief while raising concerns about the plant's privatization, a contentious issue that continues to shape its future.
SynopsisThe financially troubled Rashtriya Ispat Nigam Limited, is considering leasing 1,400 acres of its land to the National Mineral Development Corporation to generate working capital. NMDC has proposed to establish a pellets plant and stock yard on this land. While the move could ease RINL's financial strain and reduce transportation costs, some fear it may be a step towards the plant's privatization, a move contested by its workforce for several years.Article Amidst financial difficulties, the Visakhapatnam Steel Plant, popularly known as Rashtriya Ispat Nigam Limited, is contemplating a significant decision. RINL is exploring the possibility of leasing approximately 1,400 acres of its land to the National Mineral Development Corporation. This move is aimed at bolstering RINL's working capital, which has been under strain due to its financial woes.RINL is nestled on a sprawling land bank of 19,730 acres in Gajuwaka, Visakhapatnam. Of this vast expanse, 11,000 acres house the steel plant itself, with an additional 500 acres allocated for a residential township for plant employees. Another 500 acres are dedicated to reservoirs for water storage to support plant operations.The proposal under consideration involves NMDC leasing 1,400 acres of land, strategically located between the steel plant and Gangavaram port. NMDC intends to utilize this land for establishing a pellets plant and a stock yard. Discussions regarding this proposition began during the visit of Union steel secretary Nagendra Nath Sinha to the steel plant on August 21, and these discussions have progressed considerably.The terms of the lease offer a substantial financial boost to RINL. NMDC has put forward an upfront payment of ₹1,500 crore for the land, in addition to an annual lease amount of ₹70 crore for a duration of 33 years. This infusion of funds is expected to alleviate some of RINL's immediate working capital requirements.Moreover, the pellets produced by NMDC on this land are envisioned to serve as raw material for the steel plant. Currently, RINL imports this iron ore raw material from Kirandul and Bacheli in Chhattisgarh. The proximity of the proposed plant to RINL's facilities would lead to significant cost savings in transportation.While the move to lease land to NMDC has not been met with outright opposition from trade union leaders, there are concerns that it might be part of a broader plan to privatize the Visakhapatnam Steel Plant. The workforce, comprising approximately 17,000 employees, has steadfastly resisted such privatization efforts for nearly three years.Conclusion,The leasing of land to NMDC is a pivotal development in the ongoing saga of the Visakhapatnam Steel Plant. It offers potential financial relief while raising concerns about the plant's privatization, a contentious issue that continues to shape its future.
