LPG Supply Concerns May Affect Steel Production at Visakhapatnam Steel Plant

India’s public sector steel producer Rashtriya Ispat Nigam Limited, which operates the Visakhapatnam Steel Plant, may soon face operational challenges due to a possible shortage of Liquid Petroleum Gas. Officials indicate that the current LPG stock available at the plant could last only about a week, creating concerns about continuity in production if fresh supplies are delayed.

The supply disruption is reportedly linked to the ongoing geopolitical tensions in West Asia, which have affected logistics and fuel availability in several regions. LPG plays an important role in the plant’s operations, particularly in the steel melt shop where it is used for cutting blooms during the casting process.

Bloom cutting is a high temperature operation carried out after molten steel solidifies into semi finished shapes. These blooms must be cut into specific lengths before further processing into finished steel products. LPG is used as a fuel for the cutting torches that perform this process. Any disruption in LPG availability could slow down production activities and impact overall output.

The Visakhapatnam Steel Plant currently produces close to 10,000 tonnes of finished steel every day. To maintain this level of output, around 13 tonnes of LPG are consumed daily. The fuel is supplied by Indian Oil Corporation.

Industry sources say that if the supply shortage persists, the plant’s production schedule could be affected. The development is particularly concerning as the company had recently returned to profitability. The steel producer recorded a profit of about ₹54 crore in January, marking a financial turnaround after nearly 18 months.

Meanwhile, the State Government has begun regulating commercial LPG supply in order to ensure adequate availability for domestic consumers. Authorities are also in discussions with the Union Petroleum Ministry to secure uninterrupted LPG supply for the steel plant.

Ensuring continuous fuel supply will be crucial for maintaining stable steel production and protecting the operational momentum the company has recently regained.