SHIVAMOGGA: Even after the promise by Union Minister of Steel and Heavy Industries H D Kumaraswamy to revive the Visvesvaraya Iron and Steel Plant (VISL) in Bhadravathi during his visit on June 30, the Union Ministry of Steel clarified in the Lok Sabha on July 30 that there were no plans to revive the state-owned plant and that it has already been decided to close the plant.
Shivamogga MP B Y Raghavendra had asked the ministry whether the government plans to revive the steel plant, and if so, to give the details, and if not, the reasons for it. He also sought to know whether the Steel Authority of India proposes to resume production activities and if so, the details thereof.
In reply to the unstarred question asked by Raghavendra, Union Minister of State for Steel Bhupapathiraju Srinivasa Varma stated that the government accorded ‘in-principle’ approval for strategic disinvestment of VISL in October 2016. Subsequently, due to inability expressed by the shortlisted bidders to participate further in the transaction for strategic disinvestment, the competent authority had approved annulment of the expression of interest (EOI) for disinvestment.
The authority has directed the initiation of the process for closure of VISL, as communicated by the Department of Investment and Public Asset Management (DIPAM) on October 14, 2022, which was conveyed to SAIL on October 31, 2022.
The Ministry of Steel also stated that at present there are 245 regular employees on the VISL roll. Various finishing facilities such as mills and forge shop are in operation, and with the semi-finished steel supplied by sister plants/units of SAIL as per requirement, VISL produced 13,000 tonnes of saleable steel in 2023-24.
Raghavendra, who faced a backlash from the Congress after the Centre decided to close VISL, promised to ensure revival of the plant after his re-election as MP for the fourth time. He also brought Kumaraswamy to VISL, reviving hope for the revival of the steel plant. Kumaraswamy had also promised to initiate steps to revive the plant.
HDK visit
MP B Y Raghavendra brought Kumara-swamy to VISL, reviving hope for the revival of the steel plant.