Vizag Steel’s Revival Plan Ignores Core Reform: Mine Access

Published : Jan 25, 2025 20:25 IST - 9 MINS READ On January 15, when the rest of Andhra Pradesh celebrated Sankranti, the employees of Vizag Steel stood firmly outside the Visakhapatnam steel plant in protest. In 2023, Vizag Steel was at a cost disadvantage of Rs.6,000 per tonne due to a lack of captive iron ore. J. Ayodhya Ram, the leader of Visakha Ukku Parirakshana Porata Committee told Frontline: “Each tonne of Steel needs 1.6 tonnes of iron ore as raw material. It is like a chakravyuh around us.” For over three decades, successive Central governments have overlooked this crucial demand to equip Vizag Steel with captive iron ore, thereby exacerbating the crisis. “How the already understaffed, underpaid, and overworked employees at Vizag Steel will pull off the new targets of a plant working at full operational capacity is incomprehensible, unless a recruitment drive begins soon.” On January 27 this year, it will be four years since the CCEA gave its in-principle approval for Vizag Steel’s 100 per cent divestment citing losses. How the already understaffed, underpaid, and overworked employees at Vizag Steel will pull off the new targets of a plant working at full operational capacity is incomprehensible, unless a recruitment drive begins soon.