With an aim to enhancing operational efficiency and reducing expenditure, the leadership of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, came together for a ‘Zero Demurrage Campaign’ pledge on Monday. The ‘Zero Demurrage’ pledge comes in response to the significant financial challenges posed by higher Rake Retention Time (RRT), which has a direct impact on operational costs. The campaign aims to reinforce the commitment of all participants to reduce RRT and eliminate demurrage expenses, thereby enhancing the overall productivity and efficiency of the plant.
The initiative, spearheaded by Shri Atul Bhatt, CMD, RINL, along with GVN Prasad, Director (Commercial), CGM(Works)-I/c, CGMs, Heads of Departments, senior officials, and representatives of various trade unions, marks the first step in the company’s strategy to improve cost management and achieve cash profitability.
Atul Bhatt, CMD, RINL launched the first step towards cost reduction and achieving cash profit with increased production and efficiency.
Highlights:
- Recognizing the significant challenges and financial impacts associated with higher Rake Retention Time (RRT), the pledge was administered to reinforce the commitment of all participants for reducing RRT and achieving “ZERO DEMURRAGE.”
- This initiative underscores the organization’s resolve to enhance productivity, improve operational efficiency, and secure a brighter future for RINL-Visakhapatnam Steel Plant.
- Turnaround plan has been chalked out as part of which production will be maximized from 2 Blast Furnaces to ramp up the production, CMD said.
Emphasizing the critical importance of Zero Demurrage campaign, Atul Bhatt, CMD, RINL stated, ‘The financial implications of demurrage are substantial, and it is imperative that we address this issue with utmost seriousness. By pledging today, we are not only committing ourselves to a critical target but also fostering a culture of accountability, trust, and collaboration within our organization.’
CMD also asked everyone to put in concerted and dedicated efforts towards reducing the fixed cost, reducing the variable cost and increasing the production to achieve cash profits for RINL.
Zero Demurrage Campaign by the RINL Collective is the 1st step by RINL management in its efforts to march towards profitability, he added.
He also praised the dedication and commitment of RINL’s workforce, emphasizing that collective efforts will be crucial in steering the company towards profitability. He urged all employees to contribute to the reduction of fixed and variable costs while increasing production to achieve the desired financial outcomes.
