RINL Incurs Loss of Rs 40-50 Cr Amid Strike at Adani's Gangavaram Port

Rashtriya Ispat Nigam Limited, (RINL), is incurring a revenue loss of 40-50 crore rupees every day due to workers’ protests at Adani’s Gangavaram Port in Andhra Pradesh, according to a letter written by the Adani Group. 

 

Key Takeaways from Rashtriya Ispat Nigam Limited:

 

  • RINL is incurring a revenue loss of 40-50 cr rupees amid a worker's protest at Adani's Gangavaram Port.
  • The protest has been choking the supply of coking coal, a key ingredient for steelmaking.
  • Reportedly, Rs 700 cr worth of coking coal and limestone has been stuck at the Adani port since the protest began.
  • The unavailability of coking coal is causing a threat to the equipment and financial health of the steelmaker, making it difficult to meet statutory payment obligations.
  • The strike started on April 12 2024, after the management refused to seek higher pay and increased retirement benefits.

 

Atul Bhatt, Chairman and Managing Director, RINL highlighted, the unavailability of required coking coal has led the company to suffer a revenue loss of 40-50 crore rupees per day. Further, endangering the health of the equipment with prolonged shutdowns, he added.

 

Reportedly, 700 crore rupees of coking coal and limestone belonging to the steelmaker have been stuck at the Adani Port since April 12, when the protest began. 

 

According to Bhatt, RINL has been repeatedly writing to Adani Gangavaram Port Limited (AGPL)to make immediate arrangements to transfer coal and limestone lying in its yard. However, no response came from AGPL.

 

Further, the Andhra Pradesh High Court has ordered AGPL to transport the coal to RINL through a conveyor belt system or any other immediate mode of transport.

 

Steel Executive Association’s General Secretary, KVD Prasad said, "If this situation continues for another few days, total equipment worth more than 16,000 crore will be destroyed. The future of 30,000 employees is at stake now. AGPL has to take responsibility for all these losses". 

 

The rift between the striking manual workers and the Adani Gangavaram Port management was fuelled by the demand for higher wages. The port hired former fishermen as manual workers after they lost their land to the port following Adani's acquisition in 2021.

 

According to reports, the workers are seeking higher pay and increased retirement benefits which the management has not agreed to yet.

 

Read More About Rashtriya Ispat Nigam Limited Share Price Here!

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