RINL retains growth target, cuts iron-ore sourcing from NMDC

State-run Rashtriya Ispat Nigam Ltd (RINL) was hopeful of a 20-per cent rise in production to 6 million tonne of hot metal, a top company official said on Monday.

The long steel maker has also consciously decided to expand its basket of obtaining key raw material iron-ore of up to 50 per cent from sources other than NMDC Ltd.

"There is liquidity crunch caused by NBFCs in the last one and half months. It has induced some impact but that will get corrected.

"However, we are keeping our target of 6 million tonne of hot metal this year, a rise of 20 per cent over the previous year," RINL Chairman and Managing Director P K Rath said on the sidelines of 'STEELIES India' 2018 Awards.

He said in the next fiscal, the aim is for 7 million tonne of hot metal production.

"We have already sourced one-third of the requirement recently from non-NMDC sources and are in constant dialogue with various sources, be it state-owned entities or private ones, to maintain adequate supplies," Rath said.

He said RINL was also open to long-term contracts.

The company was under pressure last year, after NMDC failed to supply the key raw material due to environmental and royalty-related restrictions resulting in lower production from existing mines.

Meanwhile, Rath called for greater focus towards raw material security, as the country vies for 300-million tonne steel production by 2030-31.