Steel Minister Compliments RINL Performance, Stresses on Improving Marketing Strategies Shri Verma Reviews Performance of Bird Group of Companies

Press Information Bureau

Government of India

Ministry of Steel

22-October-2012 16:25 IST

The Union Minister of Steel, Shri Beni Prasad Verma has complimented Rashtriya Ispat Nigam Limited (RINL) for registering growth in profit and several production areas while reviewing the company’s performance during H1 of 2012-13 here today. Shri Verma called upon RINL to evolve innovative marketing strategies to perform better and intensify its marketing efforts in rural areas. The Secretary, Ministry of Steel, Shri D.R.S. Chaudhary was also present on the occasion. Shri A. P. Choudhary, CMD, RINL made a presentation on the performance of the company.

RINL posted growth in Hot Metal, Liquid Steel and Value Added Steel production, Captive Power Generation, Operating Profit and Profit after Tax during H1 of 2012-13. A marginal shortfall in the Saleable Steel production was registered due of acute power crisis in the State of Andhra Pradesh & heavy rainfall. The weakening demand of long products marginally impacted the sale of long products in the country. RINL took steps like correction in prices to improve sales.

During H1, RINL improved its rural marketing network by 69% and growth in sales increased to 88%. Significant growth was achieved in Converter Lining Life, Specific Water Consumption and Labour Productivity. RINL, paid Rs.1414.51 crores to Government of India in H1 towards Dividend and redemption of Preferential Capital.

On the expansion front, new Blast Furnace, Oxygen Plant, Turbo Blower, Power and Utility Systems were commissioned and are currently in operation. Order for new Pressure Reducing Station has been placed and is expected to be commissioned by March/April 2013. The balance units viz., Sinter Plant and Wire Rod Mill would be commissioned by end of 2012.

The company signed MOU with NMDC for transportation of Iron Ore through slurry pipeline from Bailadilla to Visakhapatnam and setting up of Pelletisation Plant at Visakhapatnam. RINL signed an MOU with Power Grid Corporation of India for manufacturing transmission line towers and another MOU for manufacturing CRGO and CRNO steel. The company’s expenditure on CSR activities grew by 10% during the review period.

The Minister also reviewed the performance of first and second quarter of 2012-13 of Bird Group of Companies (BGC). Shri Verma expressed his satisfaction over OMDC getting environment clearance for mining in Kolha Roida Iron and Manganese Mines from the Ministry of Environment and Forests. Shri Verma exhorted OMDC to start operating its mines at the earliest.

The Minister directed BGC to increase limestone and dolomite production from BSLC and was optimistic that the performance of BGC will improve under the aegis of RINL.

The Bird Group is a group of companies under the Ministry of Steel comprising of Eastern Investments Limited (EIL), Orissa Minerals Development Company Limited (OMDC) and Bisra Stone Lime Company Ltd. (BSLC). The group is a subsidiary of RINL.

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NSK/DB