Centre working out roadmap to pull RINL out of red

Visakhapatnam: Union Steel Minister H D Kumaraswamy on Thursday emphasized the Central government's commitment to elevating the Visakhapatnam Steel Plant (VSP) to the premier position in India's steel industry.

Accompanied by Union Minister of State for Heavy Industries and Steel Bhupathiraju Srinivasa Varma, AP Health Minister Satya Kumar Yadav, Visakhapatnam MP M Sribharat, and TDP state president Palla Srinivasa Rao, Kumaraswamy visited the VSP on Thursday to assess the implementation of the revival plan announced by the Centre.

This visit assumed importance as it was the first visit after the Centre had announced a revival package of Rs 11,400 crore. Kumaraswamy outlined the plans to address challenges faced by the plant, including securing captive mines and resolving labor issues, to propel VSP to the forefront of the industry.

Reiterating that the privatization of the VSP is not Centre's objective, he said Prime Minister Narendra Modi has set an ambitious target of producing 300 MT of steel by 2030, with VSP playing a crucial role in achieving this goal.

Kumaraswamy noted that prior to its expansion, Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the VSP, was profitable. However, post-expansion, the plant began incurring losses. He said about Rs 18,000 crore NPAs were there and another Rs 17,000 crore losses must be covered. The Centre, he said, was working out a roadmap to pull the plant out if its problems. He said while the roadmap would be ready in the next 15 days, the government wants to pull the RINL out of red completely by December and see that it returns to profitability.

The minister announced that the third blast furnace is scheduled to commence operations in July, aiming for full production capacity. He emphasized that while the Centre is committed to reviving RINL, stakeholders must also take responsibility to restore the plant's former glory.

Addressing the RINL employees, Kumaraswamy commended their dedication and hardwork, noting that steady progress in production over the past three months. He expressed gratitude to the Prime Minister for sanctioning an unprecedented Rs 11,440 crore revival package for the RINL and the efforts put in by Chief Minister N Chandrababu Naidu, Deputy Chief Minister Pawan Kalyan and IT Minister Nara Lokesh in getting the special package sanctioned.

However, a section of the union leaders feel that it was not so easy to revive the plant. They also claim that the measures taken by the Centre were not sufficient to bring a turnaround by December.