Vizag based Rastriya Ispat Nigam (RINL) which is set to expand the capacity of its plant faces severe challenges with respect to water supply. It has alleged that the Andhra Pradesh government was supplying less than the contracted quantity of water, according to a news report published in Financial Express.

In a presentation to the steel ministry, the state-run steel maker pointed out that though the present demand was being managed, a threat exists.

With the capacity of the plant getting expanded to 6.3 million tonnes per annum (mtpa) in less than a year's time from 2.3 mtpa at present, the company may have to spend over Rs 1,000 crore for setting up reservoirs to tide over the problem at its steel making plant.

"The plant was never shut due to shortage of water. But, the plant faces water shortage sometimes. So far, we could overcome the problem by adopting prudent water conservation measures," RINL's official spokesperson B S Satyendra said.

RINL's has been experiencing some water scarcity since 2002. Other steel makers are also not very comfortably placed on this front.