Narendra Singh Tomar directs RINL to check cost over runs, delay in expansion

KOLKATA: The union steel & mines minister Narendra Singh Tomar expressed concern over time and cost over runs at the public sector Vizag Steel Plant (VSP). He advised the plant collective to conduct root cause analysis to ascertain whether any lapse, lack of foresight or other reasons could be identified for the delays so that these can be avoided in future. The minister said this while reviewing the progress of VSP's modernization and expansion at Visakhapatnam on Tuesday. The plant's steel making capacity has been more than doubled to 6.3 million tonne (mt) from 3 mt at an investment of Rs 12,400 crore.

The loss of time and money would be more damaging if units are not stabilized after commissioning at the earliest, the minister added. Tomar also remarked that modernization, expansion, cost reduction and energy savings must be reflected in improved profitability at RINL, which runs the Vizag Steel Plant. P Madhusudan, CMD, RINL assured the minister that quick action will be initiated on his observations. He also shared details of RINL vision plan in tune with the government's target to achieve a steel production capacity of 300 mt.

The minister looked into arrangements for the forthcoming visit of Prime Minister Narendra Modi to VSP, which is scheduled to take place in July. Tomar, who is on his maiden visit to VSP, also commended the efforts made by workers and officers of RINL in reviving the plant in record time after being hit by the cyclonic storm 'Hudhud' last year.