Govt Plans Revival of VISL as Specialty Steel Hub for Defence, Aerospace Sectors

The Centre is exploring the revival of Visvesvaraya Iron and Steel Ltd (VISL), a near-defunct government-owned steel unit in Karnataka, as a high-grade specialty steel producer catering to strategic sectors like defence and aerospace.

Sandeep Poundrik, Secretary of the Ministry of Steel, confirmed on Thursday that the government is reconsidering plans to shut down VISL and instead intends to assess its potential for transformation into a niche steel producer. “We will examine whether such production is possible at VISL. All options are on the table and a decision will be taken after a feasibility study,” he said.

Located in Bhadravati, VISL is a unit under the Steel Authority of India Ltd (SAIL) and has been struggling with operations and losses for years. The plant was previously marked for closure under the government’s disinvestment and rationalisation plans.

When asked about the potential investment required to revive VISL, Poundrik clarified that no estimates have been drawn yet. “We will first study what can be done and how it can be done. Investment decisions will follow based on the study,” he added.

The Ministry is also reviewing operations at another ailing SAIL unit — the Salem Steel Plant in Tamil Nadu. “We have visited Salem. It is running below capacity. The plant can handle up to 0.35 million metric tonnes (MMT) per year. We’ve directed them to utilise the full capacity first, after which expansion possibilities will be examined,” Poundrik said.

The moves are part of a broader effort by the Ministry of Steel to reposition sick public sector units to support India’s growing demand for advanced steel in sectors such as defence manufacturing, infrastructure, and aerospace.

While both projects are at early assessment stages, they signal a shift in government strategy — from disinvestment to repurposing public sector steel assets to support strategic self-reliance.