India’s ministry of steel has sanctioned $60 million for state-run steel producer Rashtriya Ispat Nigam Limited (RINL) to meet statutory dues but it is far short of the $298 million sought to meet funds required to procure raw materials needed to maintain operations, government sources said on Thursday, September 26.
According to the sources, the ministry of steel has put in restrictions on the $60 million fund stipulating that RINL only utilise it to pay the Goods and Service Tax (GST) and other outstanding statutory dues.
However, the steel producer needs a larger amount to meet working capital requirements to procure raw materials including coking coal to sustain operations.
RINL has already shut down two of its blast furnaces at its 7.3 million mt per year steel mill at the southern port town of Vishakhapatnam and has barely enough coking coal for three to five days of consumption to sustain the operations of its third blast furnace, sources said.