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Raw Material Supply to RINL from Gangavaram Port Resumes

Tuesday 21st May 2024    228
Raw Material Supply to RINL from Gangavaram Port Resumes
 

After a gap of more than a month, the supply of raw materials from Adani Gangavaram port to Rashtriya Ispat Nigam Limited (RINL) has resumed. The disruption, caused by unrest among workers at the port, had seriously affected RINL's operations, which are heavily dependent on coking coal for steel production.

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

The RINL management, including CMD Atul Bhatt, entered into talks with the agitating workers and local authorities to negotiate the resumption of coal supply. The intervention of the district administration and implementation of court orders have facilitated the reopening of the supply channels. The resumed supply is expected to stabilize RINL's production and mitigate risks from the prolonged shortage of raw materials.

This resolution comes as a significant relief to RINL, allowing the company to continue its manufacturing operations and maintain its contribution to the steel industry.

 
 
 
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