VUPPC demands merger of RINL with SAIL
Visakhapatnam: Representatives of Visakha Ukku Parirakshana Porata Committee (VUPPC) appealed to Member of Parliament and chairperson of Parliamentary Standing Committee on Defence Radha Mohan Singh seeking immediate intervention regarding policy decisions, operational issues and safeguarding the future of Visakhapatnam Steel Plant (VSP).
A representation was submitted to Radha Mohan Singh highlighting how production is affected at Rashtriya Ispat Nigam Limited (RINL), the corporate entity of VSP, along with financial health, workforce morale and long-term sustainability.
Acknowledging the Central Government’s announcement of a revival package of Rs.11,440 crore, along with Rs.2,600 crore support from the government of Andhra Pradesh which had set expectations that the financial assistance would enable the plant to operate at full capacity, the VUPPC representatives, including VUPPC members Mantri Rajasekhar, AITUC D Adinarayana, CITU J Ayodhya Ramu, AITUC J Rama Krishna, however, stated that contrary to the expectations, several recent policy and operational decisions appear to be systematically weaken the plant.
They stated that the plant has contributed more than Rs.58,000 crore to the Central and state governments in the form of dividends and taxes. Even in 2021 when disinvestment was announced, VSP recorded a profit of Rs.921 crore.
However, after the announcement of the disinvestment decision, VSP incurred losses of Rs.2,859 crore, Rs.4,849 crore, and Rs.1,389 crore during the financial years 2022–23, 2023–24 and 2024–25 respectively.
Most of these losses were primarily due to non-supply of raw materials, non-allocation of railway rakes, non-release of adequate working capital and procurement of coal at exorbitant prices, the committee members highlighted. Despite better productivity compared to SAIL units, VSP employees continue to receive wages as per the 2007 and 2012 wage agreements and wage revisions applicable to SAIL employees have not been extended to VSP. The RINL management has unilaterally linked wages to production, withdrawn house rent subsidies, imposed electricity charges on Steel City residents, closed schools, neglected hospitals, and shut down canteens.
Senior officers raising genuine concerns are reportedly being insulted, suspended or transferred, creating a sense of fear and anxiety among employees, the committee members mentioned.
“In view of the above, we submit that consideration of merger of Rashtriya Ispat Nigam Limited with SAIL is the most viable and sustainable solution for revival of the plant and is fully aligned with India’s objective of achieving 300 million tonnes of steel production capacity by 2030,” they stressed, requesting the Member of Parliament to raise these issues in Parliament and urge the Central Government to initiate immediate corrective measures in the larger interest of the public.
