CITU demands CBI inquiry into inferior steel produced in VSP

Visakhapatnam: Visakhapatnam Steel's 'Coke Oven' department is using inferior coke, which has never been used in the last 35 years, CITU state general secretary CH Narasinga Rao pointed out.

At a media conference held in Visakhapatnam, he said that usage of such inferior material results in poor quality steel being produced. Buyers are rejecting it. The RINL CMD (Additional charge) has taken a decision to tarnish the brand name of Visakhapatnam Steel and as part of it, the plant is producing inferior steel now.

The coking coal imported directly from abroad is of inferior quality and is sold in the market for commissions.

In the past, CITU has complained to the CBI about the use of inferior iron ore. Production in the most important Steel Melting Shop (SMS) of the Visakhapatnam Steel Plant in Jaggayyapet was stopped for two days due to lack of supply of limestone from its own mines.

The CMD and the Central government have resorted to such wrong practices to damage the VSP’s goodwill in the market. The steel plant should always have enough raw materials for 45 days.

But there is no raw material stock for even three days now, Narasinga Rao expressed concern.

Visakhapatnam Steel Plant made a profit of Rs.74 crore in April and Rs.52 crore in May. Till then, two blast furnaces were operating. Profits were made from January to June.

Production in the third blast furnace started in June.

However, it incurred a loss of Rs.121 crore in July and Rs.157 crore in August. Who is responsible for this? The CBI should investigate the matter, the CITU state general secretary demanded.

While the cost of raw materials in total production was 63 percent in 2024, it has increased dramatically to 75 percent this year. Even the cost of raw materials in SAIL is about 50 percent. Who is the reason for deliberately increasing the cost of raw materials and pushing Visakhapatnam Steel into losses? The CBI should investigate who got the commission for buying raw materials, especially coke, from the market instead of importing them. In the last one year, 10,000 steel workers have been laid off, the workload has been increased, and the CMD (Additional charge) is operating the VSP without maintaining the quality, the CITU leaders demanded, adding that Chief Minister N. Chandrababu Naidu should intervene and ascertain the reason for the losses incurred by the steel plant.

Honorary president of Steel Plant Employees Union M. Jaggunaidu, and CITU Visakhapatnam district general secretary RKSV Kumar participated in the conference.