No question about Vizag Steel Plant privatization, says Union Steel Minister

Union Minister of Heavy Industries and Steel, H D Kumaraswamy, visited Visakhapatnam to conduct a review meeting on the Visakhapatnam Steel Plant, amidst privatisation concerns. He arrived in the city yesterday and met with the management of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP). This morning, he spent over three hours at the steel plant, engaging with officials.

Following the review meeting, Kumaraswamy stated unequivocally that there are no plans for the privatisation of the steel plant. He emphasized, “Before any announcement, I need the Prime Minister’s approval. I must convince him about the issues facing RINL. I’m preparing a note on what needs to be done for the revival of RINL to gain the Prime Minister’s confidence.”

He further noted, “After visiting the RINL plant, it’s clear that it contributes significantly to the country’s GDP and supports numerous hardworking families. Our responsibility is to save the plant. I want to reassure the employees: don’t worry about closure. With the Prime Minister’s blessings and support, the plant will continue to operate at 100% production capacity. All necessary resources will be mobilized.” This assurance against privatisation from both central and state governments has provided relief regarding the future of the Visakhapatnam Steel Plant.

H D Kumaraswamy requested two months for further action, noting that an official statement will follow once the Prime Minister has made a decision.

During his inspection, the Steel Minister was accompanied by the Minister of State for Heavy Industries and Steel, Bhupathiraju Srinivasa Varma, Visakhapatnam MP, Bharat Mathukumilli. and Gajuwaka MLA Palla Srinivasa Rao. The RINL CMD, Atul Bhat, and Joint Secretary of the Ministry of Steel, Sanjay Roy were also present, along with other senior officers.

Palla Srinivasa Rao, Gajuwaka MLA, remarked that the Steel Minister attentively listened to the grievances of local politicians, management, workers, and authorities. “He assured us that the plant will be revived,” Rao said. He added that local officials explained to the Minister the challenges faced by the RINL plant, particularly regarding bank loans, as the lands are registered under the Government’s name. They requested that the lands be allocated to RINL, allowing the plant to become self-reliant and potentially merge with SAIL or set up its own mines.

After his visit to Visakhapatnam, the Union Steel Minister is scheduled to depart for Hyderabad today for a review meeting with officials of the NMDC. He further posted about his visit on the social media platform, X, as follows:

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