
VISAKHAPATNAM: In what could bring a temporary relief to Visakhapatnam Steel Plant (VSP), the Centre is expected to announce an aid package of Rs 10,300 crore for it.
TDP State president and Gajuwaka MLA Palla Srinivasa Rao shared the development on X (formerly Twitter) on Thursday, stating that the Centre had approved the release of aid to VSP under a revival package.
“It is a matter of joy that the Union Cabinet has approved the release of Rs 10,300 crore under the Revival Package, with the special initiative of Chief Minister Nara Chandrababu Naidu. Heartfelt gratitude to Prime Minister Modi and CM Chandrababu Naidu for once again giving life to the slogan ‘Visakha Ukku Andhrula Hakku,” he stated.
Sources indicate that Union Steel Minister HD Kumaraswamy may announce the details in the coming days, outlining how the aid will be utilised. However, despite the announcement, VSP employees remain concerned due to the ongoing delay in salary payment.
Employees of Rashtriya Ispat Nigam Limited - Visakhapatnam Steel Plant (RINL-VSP) have faced irregular payment of salaries since September 2024. On Sankranti, VSP employees staged a shirtless protest at the main gate demanding release of pending salaries.
“We have been hearing reports about the Centre announcing an aid of Rs 10,000 – Rs 11,000 crore for VSP. Some suggest it will be in bonds, others say it will be given as debt, but there is no clarity. While the State government under the TDP has pushed for more funds, simply sanctioning money is not enough to revive the plant. Merging VSP with SAIL, and allocating captive mines are essential for a sustainable revival,” said J Ayodhya Ramu, vice-president of the Steel Workers Federation of India (SWFI).
It may be recalled that Visakhapatnam MP M Sribharat met Steel Minister Kumaraswamy in New Delhi in November 2024 to discuss pressing issues faced by VSP.
During the meeting, the MP expressed concern over the non-payment of full salaries to employees for over two months, highlighting the hardship faced by workers and the impact on their morale. He urged the Steel Minister to address the issue promptly to ensure the welfare of employees, and the smooth functioning of VSP.
In response, Kumaraswamy assured the MP that steps are being taken to resolve the matter, and reiterated the government’s commitment to supporting the steel plant and its workforce.