Challenges ahead for VSP to operate in its full capacity

Visakhapatnam: Despite the Centre announcing the highest revival package to Visakhapatnam Steel Plant (VSP), employees of the plant opine that there is still a long way to go for the plant to run in its full capacity. In order to make the plant completely operational, they mentioned that a number of challenges need to be sorted out.

A considerable number of employees are retiring every month, while the contract employees’ strength is decreasing gradually. As if they were not enough, the management recently introduced the Voluntary Retirement Scheme.

With complete salaries not getting credited for the employees, as many as 1,613 of them have already opted for the VRS. The management also gave the employees an option to work at NMDC, SAIL and Nagarnar Steel Plant on deputation.

With dwindling workforce troubling the VSP on one side, making do with inadequate supply of raw materials on the other, the employees raise concerns over operating the plant to its full capacity. “If three blast furnaces in the plant have to be operated, another sinter plant, another coke oven battery and a rolling mill are required. Without these, producing 7.1 million tonnes of steel is near to impossible,” mentioned J Ayodhya Ramu, convener of Visakha Ukku Parirakshana Porata Committee (VUPPC).

Recently, the Union government announced Rs 11,440 crore of revival plan package for the VSP which is considered the highest ever special package released for a PSU. In a step to utilise the package in a judicial manner, two Union Ministers -- Union Steel Minister HD Kumaraswamy and Union Minister of State Heavy Industries and Steel Bhupathiraju Srinivasa Varma visited the plant and reviewed with the management and employees.

Even as the challenges faced by the employees were brought to the notice of the central ministers and steel secretary Sandeep Poundrik, VUPPC representative Varasala Srinivasa Rao said that not much attention was paid to the problems discussed. “Instead, the Union Ministers emphasised that the employees have to stretch beyond their capacities to operate the plant to its full capacity,” he informed, adding even if that becomes a reality, it would still be difficult for the plant to gain its lost glory without considering other concrete measures.

In the months to come, how would the management and employees overcome the existing challenges and how would the special package funds are going to be utilised need to be seen.