VSP turnaround top on Centre’s agenda

Hyderabad: The Union government is committed to protect the interests of the employees of the Rashtriya Ispat Nigam Ltd (RINL) also known as Vizag Steel Plant (VSP) and ensure that there will be a turnaround in production, said Union Minister of State for Steel Bhupatiraju Srinivas Varma.

Varma told The Hans India on Sunday that the VSP is a sentimental issue for the people of Andhra Pradesh. The main task before the Centre is to ensure that the sentiment and the employee’s interests are protected while taking measures to revive the steel plant so that it will be out of red. He said the company was incurring a revenue loss of Rs 40-Rs 50 crore per day.

One possible way out could be not to go in for a merger with SAIL as is being apprehended but instead seek about 1,500 acres of land from RINL to NMDC to set up pellet manufacturing unit. The NMDC could give funds to VSP in lieu of the land. This can help the unit to be back on the path of revival. The minister appealed to all trade unions and employees to look at the positive side of the proposal since along with sentiment, infusing new life into the unit are equally important.

Varma said talks with NMDC regarding the viability of a pellet unit were on. He said a high-powered Central committee was studying various options available for revival of the steel plant and hence the employees need not get unduly worried. He asked the employees to come with some practical suggestions which can be forwarded to the committee for their consideration.

The minister feels that a package was one option but then that may not help the unit to get back to its full health as the production capacity of the steel maker has dipped over the last five years and has other issues like defaulted loans. They need to be addressed with a human face, he added.

Varma ruled out downsizing the staff strength of VSP. But the production ratio against the number of employees in VSP was being examined. This however does not mean that any employee would be removed as some people have been claiming. Recently about 200 employees have been sent on deputation to NMDC since the number of employees as against the production ratio was very high.

The minister further said Prime Minister Narendra Modi, Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman and all others are aware of the sentiment and at the same time are committed to see that the unit gets back to its full health.