RINL may have to spend Rs 1,000-cr to tide over water crisis

Company alleged that the AP govt was supplying less than contracted quantity

With water crisis looming large, the Vizag-based Rashtriya Ispat Nigam (RINL) may have to spend over Rs 1,000 crore for setting up reservoirs to tide over the problem at its steel making plant.

 

Alleging that the Andhra Pradesh Government was supplying less than contracted quantity, the state-run steel maker in a recent presentation to the Steel Ministry said that though the present demand was "getting managed", but a "threat exists".

 

The situation would turn out to be difficult with the capacity of the plant getting expanded to 6.3 million tonnes per annum (mtpa) in less than a year's time from 2.3 mtpa at present.

 

"Desalination or construction of additional reservoir is becoming inevitable," RINL said, adding this would require an "additional expenditure of over Rs 1,000 crore".

 

Water is an essential resource for steel production.

 

RINL, however, neither mentioned the present need of water at its plant, nor projected the requirement after the expansion of the plant capacity.

 

Average consumption and discharge of water for integrated steel-making route are at 28.6 m3 (cubic metre) and 25.3 m3 per tonne of steel produced respectively, according to a 2011 study conducted by World Steel Association (WSA).

 

"The plant was never shut due to shortage of water. But, the plant faces water shortage sometimes. So far, we could overcome the problem by adopting prudent water conservation measures," RINL's official spokesperson B S Satyendra said.

 

RINL's has been experiencing some water scarcity since 2002. Other steel makers are also not very comfortably placed on this front.