News/City Updates

Visakhapatnam Steel Plant closes Blast Furnace 3, trade unions to hold Maha Dhrana

On 12 August 2024, Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, shut down Blast Furnace-3, Annapurna, on following severe shortage of coking coal. Out of three blast furnaces (BF), now RINL, will operate with only one blast furnace raising concern among the trade unions. Sources said the raw material stocks were dwindling with no help coming from the government. Presently, The production rate has dropped from 21,000 tonnes per day to 4.5 tonnes per day.

Meanwhile, other officials seem to be of the opinion that the shutting down of BF-3 was the safe thing to do, considering the plant’s present situation.

CPM City Secretary and Steel Plant Parirakshana Committee convener Dr B Ganga Rao, released a poster for a Maha Dharna in Gajuwaka on 15 September. He said that if production stops, the blast furnaces’ battery would die, and this would cost thousands of crores to revive. He urged the State Government to pressurize the Centre to halt privatization and demanded VSP’s alliance with SAIL.

He pointed out that the plant has the capacity to produce 536.6 megawatts of electricity, with 315 megawatts required for its own operations. Despite having the potential to sell the excess power, the plant is only generating 120 megawatts due to the coal shortage. Consequently, it is forced to buy electricity from APEPDCL, incurring a monthly cost of `45 to 80 crore.

In July 2024, the Union Minister of Steel visited the Steel Plant and assured the unions that there would be no privatization, requesting 45 days to implement corrective measures. However, two months have passed with no revival plan in sight. Currently, RINL is unable to optimize production, as only one of its three blast furnaces remains operational.

On the other hand, it has been reported by The Economic Times that the Steel Ministry is discussing a support package for RINL with the finance ministry.

RINL Chairman Atul Bhatt decided to go on leave until the end of his tenure amidst the growing protests in Visakhapatnam for the revival of the Steel Plant, and the shutdown of the Blast Furnace. In his absence, Director (Projects) Arun Kumar Bagchi has been appointed as the interim CMD till 30 November 2024.

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

Share
Leave a Comment

Recent Posts

Rushikonda buildings: Chandrababu Naidu hits out at Jagan

Chief Minister N Chandrababu Naidu has come down heavily on former Chief Minister Y S…

7 hours ago

Roads in State will be pothole-free by Sankranti: CM

Chief Minister N Chandrababu Naidu has said all roads in the Andhra Pradesh state should…

7 hours ago

5 reasons why you should watch Bhool Bhulaiyaa 3 now!

Kartik Aaryan's new horror-comedy, Bhool Bhulaiyaa 3, is the talk of the town, winning hearts…

8 hours ago

Bigg Boss Telugu 8: Nikhil’s Aggression Shocks The Audience!

Bigg Boss Telugu is a popular reality show with a huge viewership from all ages.…

11 hours ago

IT employee dies in road accident in Vizag

A youth died in a road accident near Panorama Hills in the limits of the…

12 hours ago

7 upcoming events in Visakhapatnam this November that are actually fun!

As we step into a new month, fresh possibilities and memories waiting to be made…

12 hours ago