The Union government is committed to protecting the interests of the employees at Rashtriya Ispat Nigam Ltd (RINL), commonly known as the Vizag Steel Plant (VSP), said Union Minister of State for Steel, Bhupatiraju Srinivas Varma. The government will also work to ensure that the plant’s production improves.
Speaking to The Hans India on Sunday, Varma acknowledged that the steel plant is a sentimental issue for the people of Andhra Pradesh. He emphasized that the Centre’s main goal is to protect both the emotional connection people have with the plant and the employees’ jobs while taking steps to revive it. Currently, the plant is facing a significant loss, with daily revenue falling by Rs 40-Rs 50 crore.
One solution being considered is not merging VSP with SAIL, as some had feared, but instead offering about 1,500 acres of land from RINL to NMDC for the creation of a pellet manufacturing unit. In return, NMDC would provide funds to help VSP recover financially. Varma urged trade unions and employees to focus on the positive aspects of the proposal, stressing that while sentiment is important, reviving the plant is equally crucial.
The minister confirmed that discussions were ongoing with NMDC about the feasibility of establishing the pellet unit. A high-powered Central committee is currently exploring various options for reviving VSP, and Varma reassured employees that they need not worry. He also encouraged them to suggest practical ideas that could be forwarded to the committee for consideration.
Varma explained that while a financial package could help, it might not be enough to fully restore the plant. Over the past five years, production capacity has dropped, and the plant is also facing other challenges, such as defaulted loans. These issues must be addressed carefully, and with consideration for the employees.
The minister ruled out any reduction in the workforce at VSP. However, he noted that the production ratio compared to the number of employees was being reviewed. He clarified that this does not mean any workers will be laid off, contrary to some claims. Recently, around 200 employees were sent on deputation to NMDC because the employee-to-production ratio was too high at VSP.
Varma further assured that Prime Minister Narendra Modi, Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman, and other top officials are all aware of the public sentiment surrounding VSP. He confirmed that they are committed to ensuring the plant returns to full strength.
