Dwindling iron ore stocks in the Visakhapatnam Steel Plant - Rashtriya Ispat Nigam Ltd are causing concern, according to sources. The situation continues to be critical, with no improvement in supply of the raw material from the Bailadilla mines of the National Mineral Development Corporation (NMDC).

The transport of iron ore to the plant through the usual Kirandul-Kothalavalasa (K-K) railway line was suspended following a landslide near Anantagiri last month due to the damage to the track and a railway bridge. However, the railways is supplying rakes and bringing ore through the Rayagada-Vizianagaram route to the plant.

Railways sources have issued a clarification that rakes are being supplied in accordance with the indents placed by the NMDC.

“The amount due to NMDC by RINL has to be paid to increase the indent for supply of rakes,” sources in the Railways said. The present stock of iron ore may last for only a few days.

Railway sources said 96 rakes had been supplied in September, 87 in October and 72 as on November 27 in accordance with the indent given by the NMDC. More rakes would be supplied if the NMDC placed an indent.

RINL sources said the plant was getting two to three rakes (each carrying 58 wagons) as against a normal requirement of five to 10 rakes each day to keep adequate buffer stock.

RINL is trying to get iron ore from the Orissa Minerals Development Corporation (OMDC), Neelachal Ispat Nigam Ltd in Odisha and the Donimalai mines in Bihar.

RINL Chairman and Managing Director P. Madhusudan visited New Delhi on Wednesday to apprise the authorities of the problem.

Sources in RINL said on the aggregate 17,000 tonnes of hot metal was being produced as against normal production of 19,000 tonnes. The target for the current fiscal is to produce 5.5 million tonnes of hot metal.

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