The Visakhapatnam Steel Plant (VSP) is poised to reach its full production capacity with the anticipated revival of its third blast furnace, Annapurna, by the end of June. Union Minister of State for Heavy Industries, Bhupatiraju Srinivas Varma, announced the development on X on 15 June 2025, calling it a major milestone in the plant’s revival journey. “Another milestone in the revival of Visakhapatnam Steel Plant! The third blast furnace will reach full capacity in June. With the support of PM Narendra Modi, the efforts made for the revival of Visakhapatnam Steel Plant under the leadership of Minister HD Kumaraswamy have now been rewarded,” he posted.
The third furnace was previously shut down on 12 August 2024, due to an acute shortage of coking coal, severely impacting overall production. Operated by Rashtriya Ispat Nigam Limited (RINL), the corporate entity behind VSP, the plant’s recent progress follows the successful revival and 100% operational status of the other two furnaces.
At present, the plant is operating with two furnaces, generating five million tonnes of steel annually. The restart of the third furnace is expected to add another 2.5 million tonnes to the output, increasing the plant’s total production to 7.5 million tonnes per annum.
However, this reopening of blast furnace-3 comes amid ongoing worker unrest at Visakhapatnam Steel Plant. Trade unions including the Visakha Ukku Parirakshana Porata Vedika and the Centre of Indian Trade Unions (CITU) have raised concerns over the dismissal of contract workers. They are demanding the reinstatement of over 2,000 workers who were reportedly laid off and have also highlighted issues related to wage delays and fears of privatisation.
Speaking to the media a few days earlier, Visakhapatnam MP Sribharat acknowledged the recent dismissals, stating that only essential personnel have been retained in the interest of efficiency. He urged both the workforce and management to work together towards making the steel plant profitable once again.
As part of the broader revival package, the Central Government has approved funding of Rs 11,440 crore, with an additional Rs 2,660 crore contribution from the Andhra Pradesh Government. The funding is expected to support both infrastructure upgrades and debt resolution, positioning the plant for long-term sustainability.
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