Vizag Steel Plant Returns to Profit After Years of Financial Stress

After facing prolonged financial stress, Visakhapatnam Steel Plant has recorded a notable turnaround, returning to profitability with the support of both the Centre and the Andhra Pradesh government. Rashtriya Ispat Nigam Limited, which operates the plant, reported a profit of Rs 54 crore in January 2026, marking a significant recovery achieved within just 18 months.

The revival was reviewed by Andhra Pradesh Chief Minister N Chandrababu Naidu during a high-level meeting at the Secretariat, attended by senior officials from the Union Steel Ministry, state administration, and the company’s leadership. The review highlighted sharp improvements across operational, financial, and production metrics, reflecting a coordinated effort between governments, management, and employees.

One of the key indicators of the turnaround has been the sharp rise in capacity utilisation. The plant’s capacity utilisation has climbed to a record 94 percent, compared with nearly 45 percent earlier. Daily hot metal production has also more than doubled, increasing from 9,215 tonnes in the second quarter of 2024–25 to 19,401 tonnes currently. All three blast furnaces are now operating at full capacity, signalling restored operational stability.

The company’s management attributed the turnaround largely to sustained government support. The Centre has extended assistance amounting to approximately Rs 11,440 crore, while the Andhra Pradesh government has provided relief through measures related to taxes, electricity dues, and water supply. These interventions have helped ease cash flow pressures and stabilise operations. The improvement in financial performance has also led to a better credit rating for the company, strengthening its ability to manage future funding requirements.

During the review meeting, the Chief Minister stressed the need for continued policy support and inter-departmental coordination to further strengthen the steel plant. He underlined that the recovery was the result of collective efforts by workers, employees, management, and the cooperation of both governments.

With production stabilised and profitability returning, Visakhapatnam Steel Plant is now positioned to focus on sustaining operational efficiency, improving market competitiveness, and ensuring long-term financial resilience in India’s steel sector.