Vizag Steel Plant forges deal with JSPL for Rs 900 cr working capital.

In an effort to increase sales revenue, monthly turnover, and reduce losses, Jindal Steel and Power Ltd. and Rashtriya Ispat Nigam Ltd., also known as the Vizag steel plant, have partnered to obtain working capital injections up to Rs 900 crore.
An official stated here on Thursday that the timely agreement allows the steel plant to acquire raw materials and begin regular Blast Furnace-3 (BF-3) operations with the scheduled blowing-in scheduled for December 30 at a capacity of two lakh tonnes of hot metal per month.
In a meeting with the trade unions, Atul Bhatt, the chairman and managing director (CMD) of Vizag Steel Plant, stated, "The arrangement with JSPL will ensure availability of about Rs 800 - 900 crore for RINL in the form of working capital advance and raw materials required for consistent operation of BF - 3 against which RINL will be supplying about 90,000 tonnes of cast blooms every month from Steel Melting Shop-2 (SMS-2) of RINL."
Bhatt claims that even after providing the promised quantity to the former, the agreement with the New Delhi-based JSPL will enable Vizag Steel Plant to produce extra income from increased sales of roughly one lakh tonnes.
The deal, according to the CMD, will reduce losses by roughly Rs 100 crore per month and increase sales turnover to about Rs 500 crore. With this agreement in mind, Bhatt called on the labour unions to increase output and asked for the cooperation of the whole workforce in order to guarantee continued expansion and financial success.
In addition, he addressed a number of the trade unions' concerns and gave them the assurance that the management of the steel plant is taking the best possible measures to ensure its survival and profitability.
According to him, the activation of BF-3 has been presented as a calculated strategic move to maximise production capabilities and thereby improve the steel plant's overall financial situation.