Rashtriya Ispat Nigam (RINL), known as Vizag steel plant, has entered into a deal with Jindal Steel and Power (JSPL) to receive an infusion of working capital up to Rs 900 crore.

The timely deal enables the steel plant to procure raw material and start consistent Blast Furnace-3 (BF-3) operations with the planned blowing-in scheduled on 30 December, 2023, at a capacity of two lakh tonne of hot metal per month.

In this collaboration with JSPL, the company will receive investment in the form of working capital advance and raw materials required for operation consistent of BF-3, against which RINL will be supplying about 90,000 tonne of cast blooms every month from Steel Melting Shop-2 (SMS-2) of RINL.

The partnership with JSPL will power the Vizag steel plant to generate additional revenue from increased sales of about one lakh tonne, even after supplying the committed quantity to the former. Further, the activation of BF-3 has been positioned as a strategic move to optimise production capabilities and contribute towards improving the steel plant's financial position.