After the initial deadline ended on Saturday, the RINL management extended it to 20 April. At least 22 companies have submitted bids.
In the past, BRS Working President KTR has opposed the Centre's privatisation of the Vizag steel plant. (Supplied)
The Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), has extended the deadline to submit their Expressions of Interest (EoIs) for working capital and supply of raw materials to 20 April.
The initial deadline ended on Saturday, 15 April, after which the RINL management extended the deadline. So far, at least 22 companies, including five international firms, have submitted their bids.
Notably, the Telangana government-controlled Singareni Collieries Company Limited (SCCL), which had shown keen interest in the EoI, is yet to submit its bid.
Former CBI joint director VV Lakshmi Narayana had submitted a bid on behalf of a private company with the intention of raising money through crowdfunding.
Also, the Steel Authority of India Limited (SAIL), another public sector unit that the VSP executives favoured, has not yet submitted its bid. It’s not clear if SAIL is interested in submitting its bid.
RINL on 27 March invited Expressions of Interest (EoI) from private companies and steel manufacturers to provide working capital and raw materials, and to purchase its products. The deadline for submitting EoIs was 3 pm on Saturday, 15 April.
The RINL has been facing a shortage of working capital to keep the plant running.
“The RINL is looking to partner with companies having interests in steel and steel-making raw materials, and invites business proposals for the supply of steel from RINL,” the entity said while inviting EoIs.
“Potential partners may participate by way of supplying one or more key raw materials like coking coal /blast furnace coke, and iron ore and in turn take steel products as per mutually agreed terms and conditions or funding working capital and in turn take steel products as per mutually agreed terms and conditions,” the RINL said.
It is learnt that the RINL is looking at the infusion of working capital in the range of Rs 3,500 crore to Rs 5,000 crore through the EoI.
The Telangana government-controlled SCCL has been looking at the feasibility of participating in the EoI.
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, Tuesday and Wednesday, held talks with the top RINL officials.
“The SCCL representatives sought two more days to submit its EoI. That’s probably why RINL extended the EoI deadline,” a source in RINL’s worker unions told South First.
Interestingly, former CBI Joint Director VV Lakhsmi Narayana, who had taken VRS and a plunge into active politics, submitted an EoI on behalf of the private entity Venspra Impex. He said he intended to raise funds through crowdfunding.
Submitted Expression of Interest ( EOI) at 2:52 pm in the Marketing Department of Vizag Steel Plant on behalf of citizens. Hope the people, trade unions & displaced persons will extend their support in further proceedings. #savevizagsteel pic.twitter.com/Woq62l9Acz
— V. V. Lakshmi Narayana , A+ (JD) (@VVL_Official) April 15, 2023
“Our intention is that VSP should remain a PSU. If the 8.5-crore-odd people in the two Telugu states contribute ₹100 for four months, the required amount can be raised,” Lakhsmi Narayana told reporters after submitting the bid.
Venspra Impex is into the export and import of powdered minerals.
Lakhsmi Narayana contested the last 2019 Lok Sabha polls for the Vizag segment on a Jana Sena ticket, but lost to YSRCP candidate MVV Satyanarayana.
He recently announced his intention to contest again from the seat in the 2024 Lok Sabha polls. He went on to say that he was ready to contest even as an independent if no party offered him a ticket.
He has also been actively taking part in the stir launched by the RINL workers since 2021 against the disinvestment move.
SAIL, on which the steel plant executives pinned their hopes, also did not submit its bid before the initial deadline was closed on Saturday.
VSP executives wanted SAIL to participate in the EoI; it could be a win-win for both SAIL and RINL.
“SAIL has excessive iron ore in its mines. RINL is purchasing iron ore from NMDC at the market price. This purchase made RINL bear ₹4,000-5,000 extra for every tonne of crude steel production,” Steel Executives’ Association (SEA) general secretary KVD Prasad said.
RINL is associated with the adjacent Gangavaram port for getting imported coking coal delivered through conveyors. SAIL also ferries coking coal from the Gangavaram port by rail, which costs around ₹1,000 per tonne.
SAIL doesn’t have a production unit in South India. In the recent past, it received several orders for structural and intermediate products. All these can be produced in RINL and exported through the two nearby major ports.
SEA recently wrote to Visakhapatnam MP MVV Satyanarayana to urge the Centre to direct SAIL to participate in the EoI.
Satyanarayana in turn forwarded the SEA’s plea to the Union Steel Minister and its secretary.
“RINL is producing world-class products, and we guarantee the quality on a par with SAIL. If SAIL responds to RINL, huge amounts spent on logistics and iron ore fines utilisation could be saved,” SEA president Katam SS Chandra Rao said in the letter to the MP.
RINL also will benefit as its production cost will come down significantly by maximum utilisation of equipment and well-trained manpower.
Having a conversion contract with other steel manufacturing units is an existing practice as per market and logistic requirements by even market leaders.
With this, SAIL can convert its unused iron ore fines into quality steel products with good techno-economic factors with a little bit of investment.
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