Vizag Steel Plant Package: From privatization proposal to package..! 10 things that matter

Visakhapatnam Steel Center has become the center of the Central Government. Leaving aside the issue of privatization… a package was announced to provide huge incentives. To overcome the serious financial crisis, a decision has been taken by announcing a package of Rs 11,440 crore. Along with this, it is discussed that there is no conflict in the management of Visakha Steel Plant. The employees of the steel plant are happy with the decision of the Central Government.

The matter of privatization of Visakha Steel Plant has come to light from the year 2021. The central government is ready to sell its stake. Since then, agitation and protests are going on at the Visakhapatnam Steel Plant centre. On one hand, along with the workers, political parties and public organizations also organized many programs at their own level. Depending on the situation, workers were given direct support.

On the one hand, in view of the workers’ struggle and latest political developments, opinions and analyzes have been expressed that the Center has backed out from privatization of the steel plant. It can be said that the latest package announced by the Central Government is a strong proof of this. But let’s see what happened from the privatization of the steel plant to the announcement of the economic package…!

From personalization to package..! important point

1. Visakha Steel Plant is a part of Rashtriya Ispat Nigam Limited. The steel plant has nothing to do with the state government. It is a central government sector organization.
2. For the last few days, there has been a heated debate on the privatization of Visakhapatnam Steel Plant. Especially since 2021, the issue of privatization has come to the fore. Since then there has been continuous darkness over the steel plant.
3. Since 2021, the employees have been agitating that the loss-making Vizag Steel Plant should be closed and privatization should be stopped. His concern continues even today.
4. After that such developments took place as if the privatization of Visakha Steel Plant was not going to stop. Many major announcements have also been made in the direction of privatization.
5. On the one hand, amidst the workers’ struggle and the changed political equation, the central government retreated on the issue of the steel plant. At present, the coalition government in AP is in talks with the Centre. This decision was taken by announcing a big package in order to provide financial assurance to the steel plant.
6. On January 17, 2025, the central government announced a package of Rs 11,440 crore to run the plant at full production capacity. Union Minister Ashwini Vaishnav announced that the Union Cabinet Committee on Economic Affairs under Prime Minister Narendra Modi has approved it.
7. In the package announced by the Central Government, Rs 10,300 crore has been allocated under direct equity and Rs 1,140 crore under share capital. Along with Steel Minister Kumaraswamy, Ashwini Vaishnav also said the same thing.
8. Although trade unions are happy with the central government’s decision, they believe that it is a small relief. It is reported that the steel plant is deeply in debt. To get rid of this, they are demanding to make their mines available to the steel plant. Trade unions want the central government to take an immediate decision in this regard.
9. Labor unions are making it clear that the only way to run steel plants at full capacity is to allot their own mines. They are appealing to the Central Government to officially give a clear statement that it is withdrawing from the privatization steps.
10. Telugu Desam, BJP and Janasena, who are part of the coalition government, have welcomed the special package. He says that this announcement has been possible due to the efforts of his government.