New Delhi: Government-run steel-maker Rashtriya Ispat Nigam's despatch of finished products is getting hampered due to inadequate supply of rakes by the Railways.
The steel-maker has requested the steel ministry to take up the matter with the Railways and resolve the lingering issue expeditiously, a source in the ministry said.
"The despatch of finished products is getting hampered due to poor supply of rakes by the Railways. The matter has already been taken up with the Railway Board. RINL has asked us to hold a meeting with the Railways and resolve the issue as fast as possible," the source said.
RINL's sales volume in the first quarter of the current fiscal was only on par with the corresponding quarter last year. It was mainly due to poor supply of rakes by the Railways, said a company official.
However, its sales turnover during April-June quarter of the current fiscal grew by seven prcent to Rs 2,661 crore.
"Against the requirement of three rakes per day, Railways have supplied only two rakes per day on an average, which is greatly hampering the evacuation of the material from the plant," said the official.
RINL mainly sells its products in the southern region and it is also increasing its focus in the eastern region.
The company had registered an eight prcent growth in sales with a volume of 3.035 million tonnes (MT) in 2013-14. It expects a 45 percent hike in volume of production in 2014-15 as the expansion project reaches a critical stage and new units start production.
