The visit of Union Steel Minister H.D. Kumaraswamy and his deputy, Bhupatiraju Srinivasa Varma, to the Visakhapatnam Steel Plant on Wednesday has raised hopes among workers regarding the plant’s future.
The central government recently announced a massive financial package of ₹11,440 crore. However, concerns remain about the plant’s long-term viability.
Several crucial aspects were discussed during the ministers’ visit, which is expected to provide clarity on the plant’s debts, financial status, and production capacity.
Workers' unions have been demanding that the government allocate captive mines to the steel plant. Kumaraswamy’s visit has generated significant interest, as the central government, after announcing the financial package, is now reviewing the next steps.
The minister is not only meeting officials but also holding discussions with trade unions. The primary objective is to ensure that the package is utilized efficiently and that full-scale production resumes.
However, key concerns persist, leaving employees uncertain about the plant’s future. There are also lingering doubts about how the financial package will be utilized.
The management is already working to procure raw materials for Blast Furnace-3, which was scheduled to begin operations in August. Reports suggest that certain BJP leaders are assisting in this process.
Recently, Steel Secretary Sandeep Pandri visited the plant and held discussions with 250 newly appointed executive officers.
Sources indicate that the ₹11,440 crore package will primarily be used to clear bank loans and debts. Additionally, the previously allocated ₹1,650 crore is also considered part of this package. It was made clear that employees are responsible for running the furnaces efficiently.
Government officials have stated that they will not intervene in matters related to salaries, dues, and increments.
Moreover, the allocation of captive mines to the plant has been ruled out. Officials have also clarified that a merger with the Steel Authority of India Limited (SAIL) is not feasible.
They emphasized that the privatization of the plant is currently under discussion in Parliament and that the responsibility for restoring profitability ultimately lies with the workers.
