Raw Material Supply to RINL from Gangavaram Port Resumes

20 May 2024 CW Team

After a hiatus of over a month, the supply of raw materials from Adani Gangavaram Port to Rashtriya Ispat Nigam Limited (RINL) has resumed. The disruption, caused by worker agitation at the port, had severely impacted RINL?s operations, which rely heavily on coking coal to manufacture steel.

RINL, based in Andhra Pradesh and one of India's top steel producers, faced significant operational challenges due to the lack of this critical raw material. The company had sought intervention from the Andhra Pradesh government to resolve the issue and ensure the resumption of coal supplies. The port workers' strike, which began on April 12, halted the transportation of coal, putting RINL in a precarious situation. This prolonged disruption threatened both the equipment and financial stability of the company, as it struggled to meet statutory payment obligations and maintain its operations.

RINL?s management, including CMD Atul Bhatt, engaged with the agitating workers and local authorities to negotiate the resumption of coal supplies. The intervention by the district administration and the implementation of court orders facilitated the reopening of the supply channels. The resumed supply is expected to stabilise RINL?s production and mitigate the risks posed by the prolonged shortage of raw materials.

This resolution marks a significant relief for RINL, enabling it to continue its production activities and maintain its contribution to the steel industry.

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