A protest at Adani’s Gangavaram Port has dealt a severe blow to the operations of the public sector Rashtriya Ispat Nigam Limited (RINL), disrupting coal supply to its Visakhapatnam plant. RINL, in a statement issued on Thursday, expressed grave concern over the significant disruption caused by the protest, characterising it as a “formidable challenge” to the plant’s production capabilities.
The steel plant heavily relies on Adani Gangavaram Port Ltd (AGPL) for handling essential imported raw materials, particularly coking coal and limestone, crucial for its production processes. However, the ongoing protest has hindered the smooth flow of these materials, posing a critical threat to RINL’s operational continuity. Highlighting the urgency of the situation, RINL revealed that two vessels, carrying approximately 150,000 tonnes of essential materials, are currently awaiting berthing instructions at AGPL. The timely transfer of these materials is imperative to sustain production at the RINL plant. Any further delay in berthing or cargo transfer could potentially bring the plant’s units to a standstill, exacerbating the production crisis.
In response to the disruption, RINL has initiated a multi-faceted strategy to mitigate the impact and ensure operational resilience. The company has sought the intervention of the district administration to restore operations at AGPL and facilitate the expedited transfer of coal already stocked at the port. Additionally, RINL is proactively diverting two ships to Vizag Port, with the collaboration of the Visakhapatnam Port Authority (VPA), to secure alternative sources of raw materials. Moreover, the company is availing a commodity loan of 50,000 tonnes of coal from alternate ports and is in the process of issuing a global tender for emergency procurement of an additional 1.50 lakh tonnes of coal to offset the shortfall. RINL’s proactive measures underscore its commitment to ensuring uninterrupted production and addressing challenges posed by external disruptions, reaffirming its position as a key player in India’s steel industry landscape.