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Vishakhapatnam: RINL Prepare another oxygen unit at a cost of Rs 85 Cr

Liquid oxygen loaded into a tanker at a steel plant: Oxygen unit works at Visakhapatnam Steel Plant at a cost of Rs 85 crore: French company ALIH ready to complete: Things start in the first week: Already 5 oxygen units in the plant.

Vishakhapatnam: In the wake of the Covid boom the highest priority has been given to oxygen production. In this context, the French company Air Liquid India Holding Pvt Ltd (ALIH) has agreed to complete the eight-year unfinished oxygen unit at the Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Limited). It has announced plans to start production of oxygen from the plant at a cost of Rs 85 crore.

This will make another oxygen unit available. The steel plant already has five oxygen units. Ten years ago, a French company contracted to build an oxygen unit to produce 850 tons per day at the steel plant.

Work on 100 tonnes of medical oxygen began in February 2013. By 2016, 90 percent of the work was completed. ALIH demanded that the steel plant pay Rs 750 crore to complete the remaining works.

The steel plant, which did not agree to this, went to the arbitral tribunal in October 2017. The tribunal, which has repeatedly heard the case, directed the ALIH to start work by May 1. It also clarified that the plant should be handed over to the steel plant as per the book value at the time of the contract.

However, the tribunal agreed with ALIH’s request that the steel plant pay them Rs 85 crore to complete other works. In this context, the steel plant sources said that Rs 85 crore will be paid in stages. In two days, representatives of the French company will visit the Visakhapatnam steel plant, officials said. The work will be completed in the first week of May and oxygen production will start.

2 thousand tons of oxygen supply

Rashtriya Ispat Nigam Limited (RNIL) has started oxygen supply to its Visakhapatnam steel plant in the wake of Covid. Recently 103 tonnes of medical oxygen was sent to Maharashtra. A total of 2,000 tonnes of oxygen has been supplied from the steel plant so far.

The latest supply to Karnataka was 27 tonnes. Three to five units are producing 1,500 tonnes of oxygen per day and two units are producing 1,200 tonnes of oxygen per day. Of this, 2,600 tonnes of oxygen gas is produced while 100 tonnes of 99.9 per cent pure liquid medical oxygen is produced. He said the lion’s share of the production was being used for state needs.

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