Centre promises Rs 2,500 crores for Visakhapatnam Steel Plant

The long-standing issue of the privatisation of the Visakhapatnam Steel Plant recently, as news about two blast furnaces out of three being shut down earlier. In response, trade unions have been calling for financial aid to revive the Steel Plant. On 20 September 2024, Telugu Desam Party (TDP) MP M Sribharat confirmed at a press conference that the Centre is allocating Rs 500 crore funds as immediate aid for the revival of the Visakhapatnam Steel Plant. According to the latest updates, the Ministry of Steel has promised to release an additional Rs 2,500 crores to revive the two blast furnaces, with the hope of bringing the plant to full capacity production by November.

With Rashtriya Ispat Nigam Ltd (RINL), the governing body of the plant, facing a severe financial crisis, trade unions and workers have been concerned about the plant’s condition. In the agitation, left parties and trade unions staged Maha Dharna on 15 September.

While the Centre has promised to release Rs 2,500 crore, the already sanctioned amount of Rs 500 crore has been met with scepticism from opposition leaders and trade unions, who argued that the sum falls short of what is required.  “If the state is serious about protecting the steel plant, they need to come up with a proper plan and pressure the Central government at least a sum of Rs 1500 crore,” said V Srinivasa Rao, CPM State Secretary.

He further questioned the Central government’s commitment to India’s economic progress, he stated  “In his third term, the PM promised to make India a superpower by 2047. But can India become a superpower if the Visakhapatnam steel Plant collapses? How can we achieve ‘Vikasith Bharth’ without industries, agriculture or economic stability?”

Srinivas Rao emphasized that the future of the Visakhapatnam Steel Plant is in the hands of the TDP-BJP-Janasena government, and with the centre’s backing, banks will then also come forward and provide funds, or integration of the plant under SAIL (Steel Authority of India Ltd) is the hassle-free way to save the plant.

On August 12, Visakhapatnam Steel Plant, shut down Blast Furnace-3, Annapurna, following a severe shortage of coal. Out of three blast furnaces, only one is still being operated. It was reported that the production rate of the plant had dropped from 21,000 tonnes per day to 4.5 tonnes per day. The employees have gone unpaid for four months and the supply of essential materials such as iron ore, and coal has been disrupted.

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