Vizag Steel Plant: RINL To Float Tenders For Working Capital And Raw Material Supply Soon

The Expression of Interest sought by Rashtriya Ispat Nigam Limited (RINL), a corporate unit of Visakhapatnam Steel Plant, for working capital and raw material supply, has elicited a strong response, with 29 companies, including six international companies, submitting bids.

RINL is a Navaratna public sector enterprise (PSE) under the Ministry of Steel.

Visakhapatnam Steel Plant in Andhra Pradesh is India's first shore-based integrated steel plant built with state-of-the-art technology.

It has been over a month since Expression of Interest (EoI) bids closed on 21 April. RINL intended to finish the finalisation of EoIs by the second week of May. However, it is said to be becoming longer because RINL is required to follow Central Vigilance Commission (CVC) guidelines for settling bids through an open procurement procedure.

According to a RINL official, the EOI was primarily issued to gather market data. A committee is examining the contributions and will soon produce two to three business ideas.

A tender with complete technical specifications will be issued. He noted that the tender procedure is nearing completion and that it might be floated within 10 days.

RINL is drafting procedures for soliciting bids for the barter system of delivering raw materials and working capital. Those that did not submit an EOI may still submit a tender, as per The New Indian Express report.

As per 23 March notification, the potential partner may participate by supplying one or more critical raw materials and then taking steel products on mutually agreed terms and conditions. The possible partner may also provide working capital in exchange for steel products, according to the statement.