Categories: News/City Updates

Visakhapatnam Steel Plant seeks bank loans for working capital

The Visakhapatnam Steel Plant, which has been amid privatisation talks for over one-and-half years, is now in talks with many banks to get new financing in the form of loans. This development occurs while the organisation attempts to strengthen its financial position and operational capabilities.

Responding to a question posed by BJP Rajya Sabha member GVL Narasimha Rao, Faggan Singh, Minister of State for Steel, said, “The RINL, in a bid to gather working capital for the Visakhapatnam Steel Plant, has reached out to banks for loans at competitive interest rates.” Additionally, it also requested the Odisha State Government to allocate an iron ore block through the reservation to government companies.

Minister Faggan Singh added that to reduce the raw material cost, the Ministry of Steel is in talks with the Ministry of Coal for coking coal and thermal coal supply to VSP. According to Faggan Singh, the RINL has requested the Chhattisgarh and Andhra Pradesh governments the reservation of iron ore deposits. The Rashtriya Ispat Nigam Limited has been participating in e-auctions of iron ore mines but failed to secure the lease.

Also read: Tension at Gangavaram Port as 1,800 Vizag Steel Plant workers stage protest

The Minister of State for Steel cleared that the RNIL would not be merging with the SAIL, reaffirming the privatisation move. He stated that the proposed disinvestment falls in line with the new PSE policy of privatising non-feasible enterprises.

Stay tuned to Yo! Vizag website and Instagram for more city news updates.

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