Union Minister Bhupatiraju Srinivasa Varma has dismissed rumors about the privatization or merger of the Visakha Steel Plant, emphasizing the Central Government’s unwavering support for the struggling public sector unit. Addressing a media conference in Bhimavaram, West Godavari district, the Minister clarified that the Steel Authority of India Limited (SAIL) is not interested in merging with the loss-making Visakha Steel Plant.
He revealed that SAIL has expressed concerns about merging with a company facing financial difficulties. Instead, SAIL has suggested that the plant should first be revived with a financial package, and only then would discussions about a merger be considered.
The Union Minister highlighted that the Central Government has already provided ₹13,090 crore to the Visakha Steel Plant and announced an additional financial package of ₹11,440 crore to help the plant recover from its losses. Out of this package, ₹10,300 crore has been allocated for capital shares, while ₹1,140 crore has been designated as working capital.
Srinivasa Varma stated that this financial assistance is the largest package ever announced in Andhra Pradesh’s history to save an industry. He expressed pride as an Andhra native for securing this support from the Central Government, which aims to protect the sentiments of the people of Andhra Pradesh.
He also mentioned that Union Steel Minister Kumaraswamy has assured another significant financial package for the Visakha Steel Plant in the future. Srinivasa Varma expressed confidence in the plant’s ability to return to profitability, even without owning its mines. He pointed out that other steel plants in the country, such as Jindal and JSW, have been profitable despite not having their own mines.
Bhupatiraju Srinivasa Varma announced that raw materials would be procured by the end of the month, and production would begin soon. He assured that by the end of August, the plant would operate at full capacity and transition from losses to profits.
The Central Government’s massive financial support and clear stance against privatization have provided a lifeline to the Visakha Steel Plant. With a focus on revival and profitability, the plant is set to overcome its challenges and contribute to India’s steel production goals.
