Visakhapatnam Steel Plant has ₹35,000 crore liabilities, says Steel Secretary Sandeep Poundrik

The Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), has liabilities of ₹35,000 crore with defaults in loan and interest payments, according to Sandeep Poundrik, Secretary, Ministry of Steel.

“Therefore, it is the collective responsibility of every stakeholder, including employees, to work towards the betterment of the plant and clear the debts with dedication and commitment,” Mr. Sandeep Poundrik said here on Wednesday.

The government had always been supportive, and the recent revival package of ₹11,440 crore was one of the relief measures from the government’s side, Mr. Sandeep Poundrik said.

The official was in the steel plant to hold an internal meeting with the select group of executive and non-executive cadres (employees below 40 years), at the training centre of the plant. He also visited the blast furnaces and interacted with the staff during his visit.

According to sources, the meeting chaired by the Steel Secretary discussed about the issues that led to the crisis in RINL such as lack of captive mines, non-availability of operational spares, and capacity expansion. Pending salaries of employees also figured in the discussions.

Mr. Sandeep Poundrik was said to have explained the position of the plant and the government’s plans and measures. He said of the ₹11,440 crore package, ₹1,640 crore had already been disbursed to the banks. “The remaining amount is for payment of dues. The company has to meet its day-to-day operations and fixed costs from its own earnings,” he said.

The Ministry estimated that the third blast furnace would start operating with full capacity utilisation by July 2025. “With all the blast furnaces running and generating revenue, and by reducing fixed costs, the company can emerge from the crisis,” Mr. Sandeep Poundrik opined.

On the other hand, the Visakha Ukku Parirakshana Porata Committee leaders said they were not satisfied with the outcome of the official’s meeting with the employees. They said they would raise certain issues directly with Steel Minister H.D. Kumaraswamy, who was scheduled to visit the plant on January 30.