The Ministry of Steel has revealed to the Parliamentary Committee that Visakhapatnam Steel Plant aims to reach 92.5% production capacity by the October-December quarter this year. The ministry explained that the special financial package was announced specifically to rescue the plant from its financial troubles.

In a report recently submitted to Parliament, the Parliamentary Standing Committee on Steel Affairs noted that the plant had earned profits of 12,958 crores continuously for 13 years from 2003 to 2014. However, by 2024, the once-profitable organization reached a point where it couldn’t repay capital loans or interest, with outstanding bank loans totaling 18,556 crores as of September 30, 2024.

Due to the financial crisis, the company shut down its second blast furnace on September 12, 2024, and continued operations with just a single blast furnace. To revive the struggling plant, the government provided 500 crores in equity and 1,140 crores as capital loan in September 2024.

Later, the Cabinet Committee on Economic Affairs approved an 11,440 crore revival package, aiming to restart all three blast furnaces and operate the plant at full production capacity. As part of this plan, the government approved the package on January 16, 2025, and released the first installment of 6,783 crores by January 30.

The Steel Ministry has set progressive production targets: 63% capacity for January-March and April-June quarters, 76% for July-September, and 92.5% for the October-December quarter. The Parliamentary Committee has requested regular updates on the plant’s performance and progress.