November 21, 2012

Steel ministry helps RINL - VSP to get iron ore mines in UP



The Rashtriya Ispat Nigam Ltd (RINL) which runs the Visakhapatnam Steel Plant (VSP), a unit of public sector steel manufacturer SAIL (Steel Authority of India Limited), has been looking for new iron ore mines for quite some time apparently because of irregular supplies of iron ore from the National Mineral Development Corporation (NMDC). Meanwhile, constrained by the acute crisis of its main raw material iron ore, RINL - VSP also issued global tenders for iron ore supplies.
However, the Union Steel Minister Beni Prasad Verma on Monday (20th Nov’12) urged the Uttar Pradesh government to expedite the procedures for the lease of iron ore mines in Lalitpur district of Bundelkhand region to the Rashtriya Ispat Nigam Limited (RINL). “We are confident the state government would soon take positive steps in this direction,” Verma said.
RINL (Rashtriya Ispat Nigam Ltd) had already applied for the lease of iron ore mines in Lalitpur district for setting up a pellet unit in the region. A P Chaudhary, RINL - VSP chairman and managing director, said the plant would provide direct employment to 500 locals.
Meanwhile, the Union minister said the state-run RINL and SAIL were aggressively setting up rural dealerships in India to boost per capital steel consumption. So far, RINL and SAIL has set up 538 and 440 rural dealerships respectively and plan to up the number to 1,000 each in near future (SAIL to appoint 1,000 dealers in rural India). RINL plans Steep Processing Units (SPU) in Ambedkar Nagar and Ghaziabad districts of UP. It is also establishing rural stockyards, including one in Varanasi in the state. The steel minister said, SPUs are being set up in those states, where there are no big steel plants to boost local availability of steel products and generating employment.
It may be mentioned here RINL - VSP had clocked 21 per cent growth in the sale of steel products in UP during 2011-12 compared to the previous year. India, the world’s fourth largest steel producer at present behind Chiona, USA and Russia, is aiming to raise its steel production capacity to 200 million tonnes (MT) by 2020 from the current level of about 80 MT.
(Source: Business Standard)
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