Visakhapatnam Steel Plant Faces ₹35,000 Crore Debt, Says Steel Secretary Sandeep Poundrik

Visakhapatnam Steel Plant, under the umbrella of Rashtriya Ispat Nigam Limited (RINL), is running into a staggering liability of ₹35,000 crores of default on loans as well as unpaid interest, says Sandeep Poundrik, secretary in the Ministry of steel.

During the recent visit to the plant, Poundrik emphasized all stakeholders’ collective responsibility to employees toward solving the financial problem at the plant. “It is vital for everyone to contribute to the betterment of the plant and help clear its debts with commitment,” he said, stressing the importance of a unified approach.

The government has offered support, including a recent revival package of ₹11,440 crore aimed at alleviating the plant’s financial struggles. Poundrik highlighted that ₹1,640 crore of this package had already been allocated to banks, with the remainder intended for overdue payments. However, he noted that VSP must rely on its earnings to cover daily operational costs and other expenses.

Poundrik also touched on the issues behind the plant’s financial crisis, including the absence of captive mines, difficulty in sourcing operational spares, and stalled capacity expansion. Pending employee salaries were another point of discussion. Despite these challenges, the Steel Secretary expressed optimism, forecasting that the third blast furnace would be fully operational by July 2025. With all furnaces running at full capacity, he believes the plant can generate the revenue needed to overcome its current financial crisis.

However, the leaders of the Visakha Ukku Parirakshana Porata Committee, which represents plant employees, voiced their dissatisfaction with the outcomes of the meeting. They plan to raise their concerns directly with Union Steel Minister H.D. Kumaraswamy during his visit to the plant on January 30, seeking further attention to their issues.

As the plant struggles to regain financial stability, it remains to be seen whether the government’s efforts will be enough to address both operational challenges and employee concerns.