Union Steel Minister assures aid of ₹10,000 crore to Visakhapatnam Steel Plant by January 15, say VUPPC leaders

Union Steel Minister commits ₹10,000 crore financial assistance to revive Visakhapatnam Steel Plant, addressing wage payment and financial crisis.

The Centre will try to provide financial assistance of at least ₹10,000 crore by January 15, 2025 as part of its commitment to the revival of Visakhapatnam Steel Plant (RINL-VSP), Union Steel Minister H.D. Kumaraswamy is learnt to have told a delegation of the Visakhapatnam Ukku Parirakshana Porata Committee (VUPPC) in New Delhi on Wednesday.

VUPPC representatives J. Ayodhya Ram, V. Srinivasa Rao, D. Adinarayana and Mantri Rajasekhar met Mr. Kumaraswamy in the national capital on Wednesday requesting his immediate intervention in bailing out the steel plant from its financial crisis. The meeting with the Union Minister was facilitated by Rajya Sabha MP from Kerala, V. Sivadasan, of the CPI(M), the VUPPC leaders said.

The Steel Ministry had originally asked the Union Ministry of Finance to provide at least ₹18,000 crore to VSP, but they are now trying to provide at least ₹10,000 crore by January 15, said Mr. Ayodhya Ram.

The VUPPC delegation submitted a representation of their issues and demands to the Union Minister.

“The most serious and grave concern in RINL-VSP is the non-payment of wages to employees and contract workers for a few months in spite of their best efforts to cooperate with the management in improving production levels. For the last three months, salary payment dues and house rent allowances among other payments have not been paid to regular employees, and no payments to the contract workers for the last few months. Due to non-renewal of tenders, around 1,000-odd contract workers are out of service. This will affect production and quality of the product. We have brought this issue to the notice of the Union Minister and have explained the gravity of the problem to him,” Mr. Ayodhya Ram said.

This apart, an amount of nearly ₹900 crore is outstanding towards PF Trust among other Trusts from RINL, which is a serious concern for retired employees and pensioners, he added.