Indian government owned steel producer Rashtriya Ispat Nigam Limited (RINL) and Jindal Steel and Power Limited (JSPL) have inked a Memorandum of Understanding (MoU) wherein the latter will provide RINL $108 million in form of working capital advance and raw material and in lieu source semis in return, officials in RINL said on Friday, December 22.
They said that the advance working capital received from JSPL will be utilized by RINL to restart its third blast furnace lying idle since January 2022 and in return it would supply 90,000 mt of cast blooms to JSPL.
According to the officials, the following the agreement, RINL will be able to generate additional revenue from increased sales of about 100,000 mt per month even after meeting committed supplies to JSPL and raise sales turnover by $60 million per month and slash losses by $12 million per month.