HomeBig StoriesVisakhapatnam steel plant protests to intensify amid shutdown fears

Visakhapatnam steel plant protests to intensify amid shutdown fears

Visakhapatnam steel plant protests to intensify amid shutdown fears
Visakhapatnam steel plant protests to intensify amid shutdown fears 

The Visakha Ukku Parirakshana Porata Committee has announced plans to restart protests across Andhra Pradesh to protect the Visakhapatnam Steel Plant. The committee revealed its protest schedule today, stating its intention to increase pressure on the government to save the plant from potential closure.

One of the major actions planned by the committee is a siege of the Chief Minister’s office on August 22. Additionally, they have called for statewide protests in September to further their cause. The committee’s concern stems from statements made by Central Minister HD Kumaraswamy, who had assured that the government would save the steel plant. However, the committee believes that despite these assurances, there are covert plans to shut down the plant gradually.

The committee highlighted a troubling situation at the Gangavaram port, where one lakh tonnes of raw material are reportedly stuck, with no action being taken by the central government to move the material to the steel plant. They argue that this inaction is part of a larger strategy to close the plant by citing financial losses.

The state and central governments have previously assured that the plant would not be closed. However, the committee claims that there has been no significant progress in resolving the plant’s issues, even weeks after the central minister’s visit. They also pointed out a severe shortage of raw materials necessary for steel production at the plant.

Financial challenges have also plagued the steel plant. Recently, the plant borrowed Rs. 800 crores from Jindal Steel, Rs. 900 crores from Tata Steel, and funds from the Steel Authority of India Limited (SAIL). Despite these efforts, the plant only managed to generate Rs. 1,590 crores in sales last month, with Rs. 1,300 crores received in cash, while the remaining amount was used to pay off old debts.

These developments have fueled concerns about the plant’s future and prompted the Visakha Ukku Parirakshana Porata Committee to take action. The committee remains determined to fight for the steel plant’s survival and prevent its closure, fearing the economic and social impact on the region if the plant were to shut down. The upcoming protests are expected to draw significant attention and could put additional pressure on the government to address the situation.

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