RINL Workers Paid Salaries Late Due to Liquidity Constraints

New Delhi, Dec 4 (PTI) Workers of divestment-bound RINL were paid their salaries in the first week of September and October, instead of the first day of the month, due to liquidity constraints, Parliament was informed on Monday.

The employees of the steel company are usually paid their salaries on the first day of every month, Minister of State (MoS) Steel Faggan Singh Kulaste said in reply to a question in the Rajya Sabha.

"Salary payments to the employees of RINL for the month are made on 1st day of the following month. In case of September and October 2023, the salary payments were made within the first week of the following month due to liquidity constraints," the minister said.

The capacity utilisation and production has been falling over the past few months, according to the data shared by the minister.

To reduce the cost of raw materials, RINL has taken up with the Ministry of Coal seeking supply of domestic coking coal and thermal coal.

The Ministry of Steel has also requested the government of Odisha for allocation of iron ore block through reservation route.

The Cabinet Committee on Economic Affairs (CCEA), in its meeting on January 27, 2021 had accorded "in-principle" approval of 100 per cent disinvestment of RINL.

RINL, under the Ministry of Steel, owns and operates 7.2 MTPA steel plant in Visakhapatnam.

The company produces special steel, including wire rod coils, rounds, billets of different grades and dimensions. It is the first shore-based integrated steel plant in the country.