Amid speculations that Rashtriya Ispat Nigam Limited’s Vishakapatnam Steel Plant is on the verge of total shutdown due to a lack of funds and a dearth of raw materials, the central government has once again stepped in at the right time to provide financial assistance and revive operations.
It is a known fact that Blast Furnace BF-3, Annapurna, was closed a few days ago, leading to widespread outrage among employees. BF-1, Godavari, was already closed in March this year. Now, only one of the three furnaces, Krishna, is functional with the available cooking coal, which is expected to last a few more days.
Recently, Andhra Pradesh Chief Minister Chandrababu Naidu assured that his government would ensure to stop the move towards privatization of the steel plant and also promised to hold talks with the Centre to streamline operations and restart one blast furnace by the end of this month.
On Friday, the Ministry of Steel decided to render assistance of ₹2,500 crores to the steel plant and continue its operations by restarting another blast furnace in addition to the existing one. The central government also announced ₹500 crores for statutory payments and dues.
The Centre has reportedly directed the State Bank of India to release the funds by the coming Monday. The Steel Ministry also agreed to make the plant operational to its full extent by the end of November and assured the supply of raw materials and coal without interruption.
As the TDP and Janasena parties are coalition partners of the NDA at the Centre, the initial plans to privatize the Vizag Steel Plant may be abandoned given the current situation.
This post was last modified on %s = human-readable time difference 11:32 am
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