Chandrababu Naidu Calls for Higher Efficiency at Vizag Steel, Cites Heavy Investments and State Support

Andhra Pradesh Chief Minister Chandrababu Naidu has strongly emphasised the need for higher efficiency and accountability at the Visakhapatnam Steel Plant, stating that the plant cannot continue to depend on government funds while failing to improve productivity. Speaking at the Confederation of Indian Industry Partnership Summit in Visakhapatnam, Naidu highlighted that despite significant financial assistance, subsidies and a recent revival package, the plant continues to operate at a loss due to what he described as inefficiency among employees.

Naidu’s remarks come at a time when Vizag Steel has been at the centre of a long-standing debate over strategic disinvestment. Employee unions and political parties have repeatedly opposed privatisation, staging protests since 2021. Responding to questions at the summit, Naidu said that while the government has taken steps to revive the plant, employees must also take responsibility to ensure its long-term sustainability. He questioned how salaries could be justified if productivity did not match the financial assistance provided.

Earlier this year, the Union government approved a ₹11,400 crore financial package to help revive the plant. Naidu added that nearly ₹12,000 crore had been infused into the company after his government’s intervention. Apart from this, the state has offered substantial support through subsidies in property tax, water tax and electricity charges. The Chief Minister asserted that such measures were taken with the expectation that the plant would gradually return to profitability.

Naidu also pointed to the upcoming private steel plant by ArcelorMittal Nippon Steel near Vizag, stating that private players are able to turn operations profitable within a year due to systematic and professional management. He stressed that public sector units should not become “white elephants” funded continuously by taxpayers.

The Chief Minister said he will personally review Vizag Steel’s performance every three months to ensure that corrective measures are implemented. He also urged employees and stakeholders to work collectively, stating that the steel plant remains a “gold mine” if managed efficiently.