RINL: 29 companies submit EoIs; Singareni Collieries a no-show despite Telangana bravado

Amidst a lot of hype, Telangana government-controlled SCCL had finally not submitted its EoI to provide working capital to RINL.

BySNV Sudhir

Published Apr 21, 2023 | 1:56 AMUpdatedApr 21, 2023 | 9:57 AM

In the past, BRS Working President KTR has opposed the Centre's privatisation of the Vizag steel plant. (Supplied)

The assertion shown by the BRS — the ruling party in Telangana — over protecting the Visakhapatnam-based state-run steelmaker Rashtriya Ispat Nigam Ltd (RINL) appears to have fallen flat with all talk and no work.

Amidst a lot of hype, the Telangana government-controlled Singareni Collieries Company Ltd (SCCL) did not finally submit its Expressions of Interest (EoI) to provide working capital to RINL for its integrated Visakhapatnam Steel Plant (VSP).

The BRS, as part of its expansion plans across the country, had seen the Centre’s decision to privatise VSP as a gateway to Andhra Pradesh.

Telangana minister KT Rama Rao was vocal about protecting VSP from falling into the hands of private players, and said that Telangana government-controlled SCCL would respond to the RINL’s invitation for Expressions of Interest (EoIs) seeking working capital or supply of raw material.

“Why didn’t Telangana participate in the RINL EoI? The BRS had enacted a drama in the name of buying steel from RINL by participating in the EoI. BRS leaders should apologise to the Andhra people,” said BJP Rajya Sabha member GVL Narasimha Rao.

RINL has been facing a shortage of working capital to keep the plant running.

Also read: RINL extends EoI deadline: Singareni, SAIL yet to submit bids 

RINL’s business model

Sources in VSP said that, in all, RINL received 29 submissions. Seven international companies also submitted their EoI.

Now, the RINL management is expected to hold discussions with the companies participating in the EoI, scrutinise them, and finally pick one company.

RINL is looking for ₹850 crore per month for four consecutive months to keep one of the blast furnaces running and issued EoI.

After providing an extension once, the last date to file submissions closed on Thursday. SAIL, which was favoured by the workers, also didn’t submit its EoI.

Probably for the first time, RINL is exploring a business model wherein it will supply finished steel products to companies that will either fund its working capital or supply one or more of the raw materials.

Also read: RINL’s latest EoI for working capital raises heat in AP 

Expressions of Interest

Inviting EoIs, RINL said that the potential partner may participate by way of supplying one or more key raw materials like coking coal or BF coke and iron ore, and in turn, take steel products as per mutually agreed terms and conditions.

The potential partner may also fund working capital and, in turn, take steel products as per mutually agreed terms and conditions.

The notice stated that the interested party must be in the business of steel-making or raw materials used in the manufacturing of steel.

Also read: RINL organises first-ever vendor interaction programme at Vizag

Those who submitted EoIs and those who didn’t

A five-member delegation from SCCL, comprising three directors and two general managers, visited RINL to study the feasibility of participating in the EoI.

The SCCL directors, last Tuesday and Wednesday, held talks with the top RINL officials.

Interestingly, former CBI Joint Director VV Lakshmi Narayana, who had taken Voluntary Retirement Scheme (VRS) and a plunge into active politics, submitted an EoI on behalf of the private entity Venspra Impex. He said that he intended to raise funds through crowdfunding.

On Thursday, he also wrote to the Chief Managing Director, asking if the company would accept public donations in response to the EoI. He cited the example of large-scale donations being accepted for the construction of a grand temple for Lord Rama in Ayodhya.

Also read: RINL disinvestment on track, reconfirms Centre

Opposition takes a dig at BRS

Telangana BJP president Bandi Sanjay Kumar, on Thursday, criticised Chief Minister K Chandrashekar Rao for failing to send an EOI for VSP.

“The BRS government said that it would take part in the bidding but, on the last day. It failed to do so. This exposed the false promises made by the BRS leaders,” he said.

Bandi Sanjay was attending a preparatory meeting with senior leaders to make arrangements for a public meeting to be addressed by the Union Home Minister Amit Shah on 23 April in Chevalla.

“The whole country is laughing at Chandrashekar Rao after his government did not take part in the bidding,” he said, recalling that even the cheques given to farmers in Punjab bounced.

He said that the people of Telangana were upset about having a chief minister like KCR who makes false promises.

At the meeting, Bandi Sanjay also took a dig at the state IT Department, which he said completely failed in preventing the leak of the question paper of Telangana State Public Service Commission (TSPSC).

He accused Municipal Administration Minister KT Rama Rao of holding responsibility for the death of children after falling.

Instead of tendering resignation, KTR was diverting the attention of people, he claimed.

Also Read: BJP to release yearly job calendars if voted to power: Bandi Sanjay