Hudhud-hit Rashtriya Ispat Nigam hopes its crude steel production will go up by at least 10 percent in the current fiscal to over 3.5 million tonnes compared to last year despite 10 days of zero production last month due to the devastating cyclone.
"Swinging into action following the devastating cyclone that hit us on October 12, production in our plant is now in full swing. We hope to produce a minimum of 10 percent more than what we did in the last fiscal," RINL's Chairman and Managing Director P Madhusudan told PTI.
Clocking its highest-ever saleable steel production, the state-owned firm had produced 3.2 MT in the last fiscal and with the projected 10 percent growth in output, it would be a little over 3.5 MT, which would again create a record of sorts.
The cyclone had hit the operation of the company's lone steel-making facility at Vizag in Andhra Pradesh resulting in a complete halt of production for 10 days last month. However, it started operation in phases after that and now production in all units, including rolling mills has been revived.
The company's crude steel production in the first seven months of the current year was at 1.862 MT compared to 1.774 MT in the corresponding period of the last fiscal, as production was hit last month by the cyclone. "However, the RINL collective is working hard to make up for the shortfall and achieve the target of 10 percent growth in production for the current fiscal. We will achieve the set target," Madhusudan said.
Asked about the proposed initial public offering (IPO) of the company for which it had filed the initial documents with the market regulator SEBI in September, he said, "This is a call to be taken by the Department of Disinvestment." Government holds 100 percent in the Vizag-based steelmaker, which is enhancing capacity to 6.3 mtpa by next fiscal.
Post stake sale, government holding will come down to 90 percent. RINL had been looking to hit the markets to retain its Navaratna status, accorded in November 2010 with the condition that it would get listed within two years. The government had been looking to garner Rs 2,500 crore through the RINL IPO.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
