SAIL rejects the merge with Visakhapatnam Steel Plant!

The Visakhapatnam Steel Plant has been a recurring topic for the last few years. As the plant has gone into debts, officials and workers are looking for a possible way to revive it. However, Union Minister of State for Steel B Srinivasa Varma on 23 January 2025 stated that the SAIL has rejected merging the Visakhapatnam Steel Plant (VSP) with the Steel Authority of India (SAIL). Previously, this merger had been proposed as an effective way to save the former.  

“The merger of VSP and SAIL will not happen. I’m telling this as the steel minister. SAIL officials objected, saying that they would not merge with a company plagued with debts,” said the minister according to a BJP release. 

Recently, the BJP government sanctioned a special  package of Rs 11,440 crore for the revival of the plant. However, merging VSP with SAIL has been a long-awaited demand of the workers and trade unions, as they opined it to be a permanent solution for the plant that has lost its sheen. 

SAIL’s Stand on the Merge

The minister noted that SAIL haven’t entirely ruled out the merge but the officials asked for the handover of Visakhapatnam Steel Plant after its debts were cleared.

The SAIL made it clear they cannot merge the company, with its uncleared debts, immediately.

“As of now, it is technically not possible to merge the VSP with SAIL. First of all, efforts should be taken to make the Visakhapatnam Steel Plant financially sustainable. The current management has completely failed in this regard,” said Sagi Kasi Vishwanatha Raju, former independent director of SAIL.

The minister said that before the end of the January, production would start at VSP with the supply of raw materials.  Efforts will be made to bring back its full potential and make it profitable by the end of August. 

Also read- Botsa Satyanarayana demands clarity on Visakhapatnam Steel Plant revival

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