News/City Updates

Visakhapatnam Steel Plant closes Blast Furnace 3, trade unions to hold Maha Dhrana

On 12 August 2024, Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, shut down Blast Furnace-3, Annapurna, on following severe shortage of coking coal. Out of three blast furnaces (BF), now RINL, will operate with only one blast furnace raising concern among the trade unions. Sources said the raw material stocks were dwindling with no help coming from the government. Presently, The production rate has dropped from 21,000 tonnes per day to 4.5 tonnes per day.

Meanwhile, other officials seem to be of the opinion that the shutting down of BF-3 was the safe thing to do, considering the plant’s present situation.

CPM City Secretary and Steel Plant Parirakshana Committee convener Dr B Ganga Rao, released a poster for a Maha Dharna in Gajuwaka on 15 September. He said that if production stops, the blast furnaces’ battery would die, and this would cost thousands of crores to revive. He urged the State Government to pressurize the Centre to halt privatization and demanded VSP’s alliance with SAIL.

He pointed out that the plant has the capacity to produce 536.6 megawatts of electricity, with 315 megawatts required for its own operations. Despite having the potential to sell the excess power, the plant is only generating 120 megawatts due to the coal shortage. Consequently, it is forced to buy electricity from APEPDCL, incurring a monthly cost of `45 to 80 crore.

In July 2024, the Union Minister of Steel visited the Steel Plant and assured the unions that there would be no privatization, requesting 45 days to implement corrective measures. However, two months have passed with no revival plan in sight. Currently, RINL is unable to optimize production, as only one of its three blast furnaces remains operational.

On the other hand, it has been reported by The Economic Times that the Steel Ministry is discussing a support package for RINL with the finance ministry.

RINL Chairman Atul Bhatt decided to go on leave until the end of his tenure amidst the growing protests in Visakhapatnam for the revival of the Steel Plant, and the shutdown of the Blast Furnace. In his absence, Director (Projects) Arun Kumar Bagchi has been appointed as the interim CMD till 30 November 2024.

Stay tuned to Yo! Vizag website and Instagram for more city and news updates.

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