Minister reviews Vizag Steel's expansion

Expresses concern over time and cost overruns in the ongoing expansion

Union minister of mines and steel Narendra Singh Tomar expressed concern over time and cost overruns in the ongoing expansion of Vizag Steel Plant during his visit to Rashtriya Ispat Nigam Limited (RINL) here on Tuesday.

While reviewing the progress of modernisation and expansion, the minister advised the company management to conduct a root cause analysis for delay and pinpoint the reasons to avoid the same in future.

However, Tomar commended the efforts made by RINL in reviving the plant in a record time after cyclone Hudhud hit the port city last year. "The loss of time and money would be more damaging if units are not stabilised after commissioning the plant at the earliest," the minister said while suggesting that the ongoing efforts must be reflected in profitability.

RINL chairman and managing director P Madhusudan promised the minister that quick action would be initiated on his observations. He also explained to the minister about the arrangements being made for the ensuing visit of Prime Minister Narendra Modi, who is scheduled to dedicate the 6.3-million tonne expansion project to the nation on July 15.