Centre Pledges ₹10,000 Crore for Visakhapatnam Steel Plant Revival

The Union government has assured financial assistance of ₹10,000 crore for the revival of Visakhapatnam Steel Plant (RINL-VSP) by January 15, 2025. Union Steel Minister H.D. Kumaraswamy conveyed this commitment during a meeting with representatives of the Visakhapatnam Ukku Parirakshana Porata Committee (VUPPC) in New Delhi.

The VUPPC delegation, comprising J. Ayodhya Ram, V. Srinivasa Rao, D. Adinarayana, and Mantri Rajasekhar, was facilitated by Rajya Sabha MP from Kerala, V. Sivadasan of the CPI(M). The representatives sought immediate intervention to address the steel plant’s financial crisis. According to Ayodhya Ram, while the Steel Ministry initially recommended ₹18,000 crore for VSP, it is now focusing on ensuring at least ₹10,000 crore to address urgent issues.

Among the critical challenges highlighted were non-payment of wages to employees and contract workers. Regular employees have faced delays in salaries and house rent allowances for three months, while contract workers have received no payments in the same period. Additionally, the non-renewal of tenders has left around 1,000 contract workers jobless, threatening production and product quality.

The delegation also expressed concerns over RINL’s unpaid obligations amounting to ₹900 crore to the Provident Fund (PF) Trust and other trusts, impacting retired employees and pensioners. Ayodhya Ram emphasized that these financial challenges could severely hinder the steel plant’s operational efficiency and long-term viability.

The VUPPC urged the Centre to take decisive action to address these pressing issues. They submitted a detailed representation to the Steel Minister, outlining the gravity of the situation. The delegation stressed that without immediate financial relief and structural interventions, the steel plant’s recovery efforts could be jeopardized.

The Centre’s commitment to provide ₹10,000 crore marks a crucial step in reviving the iconic Visakhapatnam Steel Plant, ensuring the welfare of its workforce and securing its role in India’s industrial growth.