Adani's Gangavaram port is experiencing a strike that is costing RINL between Rs 40 and 50 crore per day

For almost a month, RINL's supply of coking coal has been stifled by the fight for equitable wages, making it difficult for the decades-old steelmaker to fulfill its legal payment requirements.

Three blast furnaces and five coke oven batteries are included in the steel factory. Because of the problem, only one of the three furnaces is working.

In a letter to the Adani Group port business, the state-owned enterprise Rashtriya Ispat Nigam Ltd. (RINL), better known as Vizag Steel Plant, said that the workers' protest at Adani's Gangavaram port in Andhra Pradesh is costing the company between Rs. 40 and 50 crore per day in lost income.

The firm has been losing between Rs 40 and 50 crore in income every day as a result of the unavailability of the necessary coking coal. Furthermore, extended shutdowns harm the equipment's health," RINL Chairman and Managing Director Atul Bhatt said in the letter dated May 5.

A copy of the letter that RINL wrote to Amit Malik, the CEO of Adani Gangavaram Port Ltd (AGPL), is available on Moneycontrol. Emails to Adani and the Steel Ministry went unanswered, but RINL verified the letter's contents.

significant losses

Beginning on April 12, the labor strike has been stifling the supply of coking coal, which is an essential component in the production of steel. The steelmaker's 700 crore worth of coking coal and limestone are reportedly delayed at the Adani-controlled port ever since the protest started.

In a letter requesting prompt action for the court-mandated transportation of coal, Bhatt said, "RINL has been writing to AGPL to make immediately make arrangements for transfer of coal and limestone standing at AGPL yards... However, no response has been forthcoming the AGPL."

According to a statement from RINL, Bhatt wrote to the Vizag district collector, "The lack of required coking coal is posing a severe threat to the equipment's health and the steelmaker's financial stability, making it difficult to meet statutory payment obligations."

As per the reports, AGPL has been directed by the Andhra Pradesh High Court to transmit the coal to RINL by a conveyor belt system or any other expedient form of transportation.

In the event that this state of affairs persists for many more days, all equipment valued at above 16,000 crore will be destroyed. It's now or never for 30,000 workers' futures. All of these losses must be AGPL's fault," GVD Prasad, Director (Commercial), RINL, said.

Three blast furnaces and five coke oven batteries are included in the steel factory. Because of the problem, only one of the three furnaces is working.

Why are laborers going on strike?

The demand for increased salaries sparked a divide between the administration of Adani Gangavaram Port and the striking manual workers. After Adani's takeover in 2021, the port lost its property, therefore it employed former fisherman as manual laborers.

For Rs 3,604 crore in March 2021, Adani Ports and Special Economic Zone Ltd. (APSEZ) bought the DVS Raju family's 58.1 percent controlling interest in the Gangavaram port. The fishermen were affected by the port's purchase and subsequent growth, although some of them were transferred to the port to work as manual laborers.

Reports state that employees are requesting more retirement benefits and better compensation, to which management has not yet consented.

The port is well situated to act as a gateway to Southeast Asian neighboring nations as well as India's east coast. Trade routes between India and important Asia-Pacific markets, such as China, Japan, South Korea, and ASEAN countries, are facilitated by its position.