Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) has signed an agreement with Tata International Limited (TIL) to secure steel making raw materials through letters of credit, sources at RINL said on Wednesday, November 29.
TIL under the Tata Group is a global trading and distribution company focused on metals, minerals, agri-products and leather goods.
The sources said that TIL will facilitate the acquisition of raw materials from various domestic and international sources at five percent interest and the total procurement cost paid by it will be repaid by RINL within a stipulated time.
The arrangement will improve the financial health of RINL though reduction in requirements of working capital, lower debt and reduced sourcing costs.