(a) whether the Rashtriya Ispat Nigam Limited (RINL) and the Government has recently entered
into a Memorandum of Understanding to produce various variety of steel;
(b) if so, the salient features of the MoU;
(c) whether MoU between RINL and the Government is going to meet the shortage of steel in the
open market; and
(d) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF STEEL (SHRI JITIN PRASADA)
(a)&(b): A Memorandum of Understanding (MoU) between Rashtriya Ispat Nigam Limited (RINL) and
the Government for the year 2008-09 was signed on 19.3.2008. The MoU has Performance Evaluation
Parameters as per guidelines of Department of Public Enterprises for the year 2008-09 classified
as Static Financial parameters, Dynamic parameters, Sector specific and Enterprises specific
parameters. As per the MoU signed, the Budget estimates for the year by RINL for Gross Sales and
Gross Margin are Rs.10,500 crores and Rs.2300 crores respectively. RINL also envisages Rs.17
crores for Research & Development and the production of 3.08 million tonnes of Saleable Steel
during 2008-09. The Project Implementation Milestones are also included as MoU parameters.
(c)&(d): Achievement of the production targets fixed in the MoU signed would ensure greater
supply and thus bridge the demand supply gap to a certain extent.