RINL and JSPL Enter Agreement to Revive Blast Furnace-3, Enhance Production Capacities

RINL and JSPL Enter Agreement to Revive Blast Furnace-3, Enhance Production Capacities

VoM News Desk | December 23, 2023 | 10:02 AM IST | Breaking News | Follow on Google News

RINL and JSPL Enter Agreement to Revive Blast Furnace-3, Enhance Production Capacities

RINL and JSPL Enter Agreement to Revive Blast Furnace-3, Enhance Production Capacities

Rashtriya Ispat Nigam Limited (RINL) has forged a significant agreement with Jindal Steel and Power Limited (JSPL) to provide critical working capital support and raw materials worth up to Rs 900 crore. The collaboration involves a memorandum of understanding (MoU) to facilitate the revival of its dormant third blast furnace (BF-3), which ceased operations in January 2021. The anticipated restart of BF-3 is scheduled for December 30, 2023, aiming to achieve a monthly hot metal production capacity of 2 lakh tonnes.

JSPL’s commitment entails ensuring adequate funding in the form of advance working capital or raw materials, totaling between Rs 800-900 crore, to sustain the seamless operation of BF-3. In reciprocation, RINL pledges to supply JSPL with approximately 90,000 tonnes of cast blooms per month. This collaboration is projected to yield a substantial monthly upswing in sales turnover, estimated at around Rs 500 crore. Additionally, it aims to curtail losses by approximately 50-100 crores per month.

The revitalization of RINL’s Blast Furnace-3 stands as a strategic maneuver to optimize production capacities. This revival initiative is poised to significantly bolster RINL’s financial standing, marking a pivotal step towards augmenting its overall operational performance and financial stability.

VoM News Desk

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