Vizag Steel Plant will never be privatised, says TDP leader

Telugu Desam Party’s Andhra Pradesh president and Gajuwaka MLA Palla Srinivasa Rao asserted in a press briefing on 19 August 2025 that the Vizag Steel Plant (VSP) would “remain firmly in the public sector and would never undergo privatization under any circumstances.” He made the remarks while addressing the media at the TD’s central office in Mangalagiri, clearing the air on recent developments.

Recently, RINL announced that two-thirds of its thermal power plant, which supplies electricity to the steel plant, will be transferred to private management. This comes on the heels of earlier tenders that opened the door for private participation in the Quality Assurance and Technology Department, the Raw Material Handling Plant (RMHP), and the Sinter Plant—units that together employ close to 850 workers.

Highlighting the intervention of Chief Minister Nara Chandrababu Naidu, Srinivasa Rao said the state government had stood by the steel plant when it was reeling under a severe financial crunch. He recalled how a revival package worth over Rs 14,000 crore – Rs 11,440 crore from the Union government and Rs 2,600 crore from the state – was mobilised to put the plant back on track. “These funds have ensured a steady supply of raw materials, power and water, breathing life into the plant’s operations,” he said, stressing that this package had decisively changed the fortunes of the enterprise.

On the concerns voiced by workers’ unions, he clarified that outsourcing auxiliary tasks should not be confused with privatisation. “Such arrangements are not new. They have existed for decades. Today, more than 15,000 contract workers are employed in the plant, and their contribution is vital to production,” he explained. Referring to the operational scale of the plant, he said it runs three blast furnaces, and at least two must work at full capacity to break even. “Now, with two furnaces running optimally, the plant has entered profit. Despite a monthly wage bill of Rs 240 crore, the plant is generating surpluses of Rs 100–200 crore,” he added.

The TD leader also reaffirmed that the government would ensure justice for families displaced during the plant’s establishment. He said relief had already reached 8,000 displaced persons, with further measures underway.

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