Coal crisis threatens operations at Vizag Steel Plant, RINL scrambles for solutions

VISAKHAPATNAM: Rashtriya Ispat Nigam Limited (RINL), also known as Visakhapatnam Steel Plant, is currently facing a severe coal crisis. This is due to a week-long strike by workers at Gangavaram Port Limited (GPL). The shortage of coking coal is causing problems to RINL's operations and may result in permanent damage to critical infrastructure, leading to a potential shutdown that could span several months.

Efforts to address the crisis have been met with resistance. Striking employees thwarted an attempt to evacuate 2.5 lakh tons of imported coking coal from Gangavaram Port, exacerbating the urgency of the situation. RINL's Chairman and Managing Director, Atul Bhatt, along with district authorities and worker unions, have appealed for a swift resolution, emphasising the livelihoods of 30,000 plant employees hanging in the balance.

RINL relies heavily on Gangavaram Port's services for handling imported raw materials, including coking coal and limestone, crucial for its production processes. With operations at Gangavaram Port halted since April 12, two vessels carrying approximately 1,50,000 tons of essential materials remain stranded, further imperilling RINL's production continuity.

To alleviate the crisis, RINL has mobilised a multi-pronged strategy. They are seeking the intervention of the district administration to expedite operations at Gangavaram Port and facilitate the transfer of 2.2 lakh tons of coal already in stock. Additionally, steps such as diverting two ships to Vizag Port to ensure raw material security with the able support of Visakhapatnam Port Authority (VPA), securing a commodity loan of 50,000 tons of coal from alternate ports and initiating a global tender for emergency procurement of 1,50,000 tons of coal are underway to ensure raw material security and uphold operational integrity.

RINL CMD Atul Bhatt has emphasised the importance of safeguarding the uninterrupted flow of raw materials. He has also emphasised the company's unwavering commitment to technological discipline and operational safety.