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The Visakhapatnam Steel Plant has been severely hampered by a significant scarcity of coking coal, but there are also unpaid power bills. The plant management has received a notification from the Eastern Power Distribution Corporation Limited (EPDCL) threatening to cut off power if unpaid invoices totalling more than ₹70 crores are unpaid.
Concerning the lack of coking coal, the management reports that the plant's output is facing significant challenges due to the unrest of workers at Adani Gangavaram Port Limited (AGPL), which has completely halted the coal supply.
However, undeterred by the obstacles, the steel plant’s management has launched a comprehensive strategy to mitigate the impact of the disruptions and uphold operational continuity, according to a press note issued by the plant management.
It has been claimed that this is the first time in the 33 years of the plant's production that management has created a shortage. The CITU state secretary, Ch. Narasinga Rao said that around 30,000 tonnes of coking coal are in the Gangavaram stockyard. Another 1.5 lakh of coking coal had arrived from Australia in two ships at the Gangavaram Port.
The plant management said it had taken action to ensure an uninterrupted coal supply and safe operations. Meanwhile, the plant management informed that Adani Gangavaram Port Limited (AGPL) had halted operations. The plant relies heavily on AGPL to handle raw materials, including coking coal and limestone, which are vital for its production. In view of the extreme criticality of the situation, RINL has sought the help of the district administration to restore operations at AGPL without delay in shifting approximately 2.2 lakh tons of coal, which is already at AGPL.
The alternative measures suggested include diverting two ships to Vizag Port Authority to ensure raw material security with the able support of Visakhapatnam Port Authority (VPA) and a commodity loan of 50,000 tonnes of coal from alternate ports, besides a global tender for emergency procurement of 1,50,000 tons of coal, plant CMD Atul Bhat informed.
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