RINL plans shipping container unit to improve financial health
Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), is planning to diversify into shipping container manufacturing to improve its financial position and generate additional revenue.
The public sector steelmaker has invited Expressions of Interest (EoIs) from companies, technology providers and investors to set up a container manufacturing unit on its premises through a joint venture.
The proposal comes in the wake of the Union Cabinet’s approval of the ₹10,000-crore Container Manufacturing Scheme, which provides financial assistance until 2039-40. RINL could benefit from the scheme if the project materialises.
The proposed plant will initially manufacture ISO Series 1 dry freight shipping containers, with an annual production capacity of 15,000 twenty-foot equivalent units (TEUs). The product mix will include 20-foot and 40-foot containers, with scope for future expansion.
The prospective partner will be required to assess the plant configuration, production technology, level of automation and investment requirements before submitting a proposal.
RINL, which has an installed liquid steel production capacity of 7.3 million tonnes per annum, is working to overcome operational challenges, ramp up production and improve efficiency. The proposed venture is part of its effort to explore new business opportunities for sustainable growth.
According to RINL, the project will support the Centre’s Atmanirbhar Bharat initiative by reducing dependence on imported shipping containers and bridging the gap between domestic demand and supply.
The company said the concentration of global container production in a few countries has created supply bottlenecks, highlighting the need to strengthen domestic manufacturing capacity.
RINL considers its proximity to Visakhapatnam Port and Adani Gangavaram Port, and its road and rail connectivity, a major advantage for the project. The availability of land, power and water within the steel plant premises is also expected to ease the setting up of the unit.
The EoI process aims to identify technically qualified and financially capable companies, either individually or as part of a consortium, to establish and operate the facility.