Steel Plant Conservation Committee: Govt out to destroy Visakhapatnam Steel Plant through anti-labour initiatives

On August 13, 2024, the Visakha Steel Plant Conservation Struggle Committee held a meeting where they relayed their concerns about the treatment of the Visakhapatnam Steel Plant by the NDA-led government. Despite assurances from the Union Steel Minister that the plant would not be privatized and would operate at full capacity, the management has reportedly implemented several unfavourable measures in recent months. The committee believes these anti-labour initiatives aim to weaken the Visakhapatnam Steel Plant and have no option but to continue their struggle.

In reaction to the unfavourable treatment, the Visakha Steel Plant Conservation Struggle Committee has announced a protest against the central government’s actions towards the Visakha Steel Plant. The protest will take place at the Chief Managing Director’s (CMD) office on 22 August. The protest will be followed by a state-wide demonstration in September.

The Visakha Steel Plant has made important contributions to the country, paying Rs 54,380 crores in taxes and dividends to both central and state governments. However, the plant has faced challenges due to the lack of access to its own mines. In turn, this has led to an additional annual expenditure of Rs 3,000 crores. Despite these hurdles, the plant’s workforce managed to achieve a production capacity of 7.3 million tonnes.

However, last year, the central government shut down one of the plant’s blast furnaces, reducing production by 40% and causing a loss of Rs 4,000 crores. Furthermore, the plant has not recruited any new workers in the past five years, while over 5,000 employees have retired. Anti-labour initiatives including the government’s plan to reduce the workforce by 30% through voluntary retirement schemes (VRS) has also raised concerns about the privatization of Visakhapatnam Steel Plant.

In light of these developments, the Visakha Steel Plant Conservation Struggle Committee is urging the people of Andhra Pradesh to support their cause. They are calling for widespread participation in the protest at the CMD office on August 22 and the state-wide ‘Rastaroko’ protest in September, aiming to pressure the government to restore the plant’s full production capacity.

The committee members, including Chairman Varasala Srinivasa Rao and Minister D Adinarayana, are leading the efforts to safeguard the future of the Visakhapatnam Steel Plant.

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