Published On:May 9 2024
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RINL Requests Andhra Pradesh's Intervention for Coal Supply from Gangavaram Port

Rashtriya Ispat Nigam Limited (RINL), a major steel producer in Andhra Pradesh, has requested the state government's intervention to ensure the immediate supply of coking coal stuck at Adani Gangavaram Port. The coal supply has been held up since last month due to a workers' strike at Adani Gangavaram Port Limited (AGPL), operated by Adani Ports and SEZ (APSEZ).

In a letter to the Visakhapatnam district collector, RINL's Chairman and Managing Director Atul Bhatt described the firm's critical situation due to the ongoing agitation by AGPL workers, which has disrupted the supply of coking coal—a vital raw material for steel production. The strike, which began on April 12, has hindered the transport of coal from Gangavaram Port, creating significant operational challenges for RINL.

"We request the district administration and police to provide the necessary security to facilitate the transportation of critical materials—coal—so that RINL can peacefully move the coal with its own loaders and dumpers," Bhatt wrote.

RINL is one of India's top six steel producers, operating under the Union steel ministry. It has three blast furnaces, each with a capacity of 2.5 million tonnes. Coking coal is essential for the manufacturing of steel, and the prolonged disruption is causing serious operational and financial consequences for the company.

Bhatt noted that more than 1,000 RINL employees, along with trade union leaders, had interacted with the agitating AGPL workers to persuade them to allow the immediate transfer of coking coal to RINL. However, despite court orders mandating the transportation of coal to RINL, the coal has remained stuck, further escalating the crisis.

"The ongoing impasse, extending for nearly a month, is posing severe threats to the health of the equipment and the financial health of the company," Bhatt stated, highlighting that the company is struggling to meet even its statutory payment obligations.

RINL has asked for urgent government intervention to resolve the issue, emphasizing the need for immediate security measures to facilitate the movement of coal. Without a quick resolution, the steelmaker faces continued operational disruptions and escalating financial challenges.

Adani Gangavaram Port Limited (AGPL) has not provided an official response to the queries regarding the delay in releasing the coking coal. The outcome of this intervention request is eagerly awaited, as it could significantly impact RINL's operations and the broader steel industry in Andhra Pradesh.

BS





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