CM Chandrababu Naidu: Will streamline funds and save Visakhapatnam Steel Plant

With Rashtriya Ispat Nigam Ltd (RINL) facing a severe financial crisis, Andhra Pradesh Chief Minister N Chandrababu Naidu has reaffirmed his commitment to keeping the state-owned Visakhapatnam Steel Plant in public hands. Speaking at a press conference on 17 September 2024, Chandrababu Naidu expressed his determination to prevent privatisation, recalling previous efforts by the Telugu Desam Party (TDP) during Atal Bihari Vajpayee’s regime to rescue the steel plant through debt restructuring and additional funding.

The Chief Minister stressed that a similar initiative under the current NDA-led government could help restore the plant’s financial health. He urged the employees and trade unions to adopt effective management practices and warned that the plant needs to overcome technical and logistical challenges to survive. “The steel plant requires top-tier management to resolve these issues and bring it back to profitability,” he said.

He also pointed out the need for accountability from RINL’s workforce. “The union and employees must take responsibility for ensuring smooth operations. While private steel plants are generating profits, RINL’s management should question why a government-owned entity is in this position,” Naidu remarked. He added that while the plant holds sentimental value for the state, emotional attachment cannot justify a bailout.

The Chief Minister revealed that he recently met with Finance Minister Nirmala Sitharaman and Steel Minister HD Kumaraswamy to discuss financial assistance for the plant. “Funds will be released to keep the plant operational for now,” he confirmed, emphasizing the government’s intent to streamline operations and prevent privatisation.

These comments from Chandrababu Naidu come amid growing concerns about the future of the Visakhapatnam Steel Plant, which has been struggling to remain viable in a competitive steel industry.

In the latest update on the issue

Stay tuned to Yo! Vizag website and Instagram for more city and news updates.