Visakhapatnam Steel Plant Won’t be Privatized, Says Steel Minister Kumaraswamy

Giving a major announcement to a perturbed nation, Union Steel Minister H.D. Kumaraswamy yesterday assured that Rashtriya Ispat Nigam Limited – Visakhapatnam Steel Plant will never be privatized, but the plant will be revived and taken on a glory mission to be the first steel producer in the country.

On his visit to the plant on January 30, the minister also stated that RINL had put up rather robust production numbers, at 14,000 metric tonnes in December 2024 with the two operational blast furnaces and is planning the third one to be restarted from June/July 2025, which may accordingly raise total capacity to 21,000 metric tonnes per day.

Kumaraswamy admitted the plant faced financial issues but explained that RINL was doing good until 2013-14 while operating at 7.3 million metric tonnes, after which it faced financial trouble with the liabilities reaching ₹18,000 crore in 2021 to ₹35,000 crore now. However, he asserted that debt resolution is presently under active consideration by the government and that the stabilization of the plant’s operations is being emphasized.

He credited the efforts of Prime Minister Narendra Modi, Andhra Pradesh Chief Minister N. Chandrababu Naidu, and other leaders for pushing to protect the steel plant. The central government responded by approving an ₹11,440 crore revival package in January 2025, of which ₹1,640 crore has already been disbursed.

With signs of recovery from the plant, the minister indicated that privatization is not on the agenda, while the efforts would focus instead on upping production, reducing liabilities, and ensuring long-term financial sustainability.