From Struggle to Strength: Visakhapatnam Steel Plant Rebounds with 79% Capacity Utilisation

The Visakhapatnam Steel Plant (VSP) has scripted a powerful comeback story, transforming from a struggling operation into a symbol of industrial resilience. Within just a year, the plant’s capacity utilisation has surged from 25% in September 2024 to an impressive 79% by September 2025 — a turnaround that has renewed confidence in India’s public sector steel ecosystem.

At a review meeting held at the State Secretariat, Andhra Pradesh Chief Minister N. Chandrababu Naidu lauded the remarkable progress achieved through the joint efforts of the Central and State governments, the plant’s management, and its dedicated workforce. The meeting, attended by RINL CMD Ajit Kumar Saxena and Ministry of Steel Joint Secretary Abhijit Narendra, reviewed the revival roadmap that has steered this transformation.

Central to this revival was a financial package of ₹11,440 crore sanctioned by the Union government, with a substantial portion already disbursed. These funds have provided VSP the critical lifeline it needed — enabling smoother operations, clearing long-pending dues, and restarting essential production and maintenance activities.

Chief Minister Naidu praised the teamwork and perseverance of the plant’s employees, describing the revival as a reflection of both “determination and disciplined management.” He stressed that the plant’s resurgence carries broader significance — revitalising local industries, supporting thousands of jobs, and strengthening Andhra Pradesh’s position as a key manufacturing hub on India’s east coast.

Looking ahead, the Chief Minister has set a fresh target of achieving 92.5% capacity utilisation by the end of the third quarter, underscoring the state’s commitment to sustained growth. He has also directed officials to conduct monthly and quarterly reviews to maintain transparency and operational efficiency.

The Visakhapatnam Steel Plant’s turnaround stands as a beacon of what focused leadership, financial discipline, and coordinated governance can achieve. With momentum now firmly on its side, VSP is not only reclaiming its lost strength but also shaping a stronger future for India’s steel industry.