Nagarani Steel Plant wishes to induct 100 VSP officers on deputation in the first phase

VSP production dipped to 2.5 million tonnes per annum from 7.5 Million
VISAKHAPATNAM: The Visakhapatnam Steel Plant (VSP) is facing a significant decline in production, with output falling from 7.5 million tonnes to 2.5 million tonnes per annum due to the closure of two blast furnaces. The shutdown is attributed to a shortage of raw materials and financial constraints. Amidst this crisis, the NMDC's Nagarnar Steel Plant has requested VSP to send 100 officers from various departments on deputation as part of an alleged understanding to transfer 500 officers.

Rumors have been circulating in Vizag Steel City about VSP management's decision to offer voluntary retirement to around 2000 permanent employees out of 12,500 and terminate 3000 contract workers out of a total of 15,000. The number of permanent employees at VSP has already decreased from 20,000 to 12,500 in recent years.

Vizag MP M Sribharat has raised the issue with the Finance Minister and Steel Minister, who have responded positively. He plans to inform them again about the current situation and the sentiment of the Andhra Pradesh public regarding the Vizag Steel Plant, bringing it to the attention of his party president and chief minister Nara Chandrababu Naidu.

The reduction in VSP's production has had numerous negative impacts on the public and various sectors. Steel prices have increased by around Rs. 5000 per tonne due to private firms and dealers raising prices in response to the production decline.

"Steel prices were unofficially increased. If the plant was in full production, VSP would generate 540 MW of power and provide surplus power to EPDCL but whereas plant is purchasing power from EPDCL and is pending arrears of around Rs. 95 crores," one of the senior officers on condition of anonymity told TOI.

The plant not only produces steel but also generates power, medical oxygen (which was crucial during the Covid-19 pandemic), Ammonium (Pushkala brand) for agricultural needs, and raw materials for the production of Nafthalin, Benzol, and batteries. Moreover, the state and central governments have lost hundreds of crores in tax revenue.

The NMDC's Nagarnar Plant has sent an official letter to VSP, announcing walk-in interviews for interested officers from September 23 to September 25. The letter outlines the plant's requirements for officers in various departments, including marketing, production, and development.

Trade unions are expressing anger over the proposal to send VSP officers on deputation, arguing that it would further diminish Vizag Steel Plant's production and potentially lead to its closure. They believe that instead of transferring officers, the government should provide financial assistance to the plant.

Workers under the banner of Visakha Ukku Parirakshana Porata Committee have been conducting relay hunger strikes for the past 1320 days to protect the plant. VSP is facing a coal shortage, resulting in reduced pushings in coke oven batteries and a scarcity of gas to operate the blast furnaces.

Despite Union Minister for Steel Kumara Swamy's assurance of support during his visit to the plant 50 days ago, no action has been taken to rescue the plant. CITU leader K Ayodhya Ram emphasizes that VSP is not operating at a loss but requires financial support and raw materials to achieve full-capacity production.

The Steel Executives' Association (SEA) is urging the government to provide financial aid to the plant and also pursue the mega-merger of steel PSUs – RINL, SAIL, and NMDC. SEA secretary and Joint Secretary of the Steel Executives Federation of India, KVD Prasad, believes that protecting VSP, as a strategic sector, would benefit the country, not just individuals.