Indian government-run steel producer RINL is losing an estimated INR 400-500 million ($5-6 million) per day in revenues owing to a strike by workers at Gangavaram port operated by Adani Group, leading to shortage of imported raw materials such as coking coal, a company executive said on Thursday, May 16.
“Due to non-availability of required coking coal, the company has been suffering a revenue loss of INR 400-500 million per day. Further, the health of equipment is endangered with prolonged shutdowns,” Atul Bhatt, chairman and managing director of RINL, said in a letter dated May 5 sent to Adani Gangavaram Ports Limited (AGPL).
The strike over wages, which started on April 12, has cut off raw material supplies to RINL’s 7.3 million mt per year steel mill in Vishakhapatnam in the south. It is estimated that about INR 7 billion ($84 million) worth of imported coking coal and limestone are stuck at the port, seriously impacting the operations of the steel mill.
“RINL has been writing to AGPL to make immediate arrangements for the transfer of coal and limestone lying at AGPL yards. However, no response has been forthcoming from AGPL,” Bhatt said in his communication.
The steel mill has five coke oven batteries and three blast furnaces but only one furnace is operational due to the ongoing issues at the port.
