New Delhi: State-run steel maker RINL has cut its production by nearly 30%due to slackening demand of the commodity from consuming sectors like automobile and manufacturing, a top company official said today.
“Our current level of production is restricted to 70% in view of the global financial crisis that has led to a dip in demand from automobile and manufacturing sectors,” RINL chairman and managing director P K Bishnoi told PTI.
RINL, a mini-ratna PSU under the administrative control of the Steel Ministry, has an annual production capacity of about 3 million tonnes.
Owing to the dip in demand over the months, the steel major is left with a huge 6 lakh tonnes of inventory worth about Rs1,800 crore.
Bishnoi said the company managed to clear about 33% (2 lakh tonnes) of its stockpiles in January by way of “aggressive selling and foregoing the premium” that it used to charge on its products earlier.
During April-January period of the current fiscal, the company’s saleable steel production stood at 2.35 million tonnes, which it claims is 93% above the planned target and 106% of the rated capacity.
The company’s turnover for the ten-month period stood at Rs7,994 crore, up 2% compared to Rs7,827 crore of the corresponding period in the last financial year.