LPG supply shortage threat looms large over VSP operations
- LPG supply shortages could severely impact overall production capacities at VSP
- The plant registers a daily consumption of approximately 12 tonnes of LPG
- However, the available reserves are alarmingly low at Visakhapatnam Steel Plant
Visakhapatnam: The growing shortage of Liquefied Petroleum Gas (LPG) at Visakhapatnam Steel Plant has raised serious concerns about potential production disruptions in the coming days.
According to sources from the VSP and employee unions, LPG reserves at the plant are steadily depleting.
If the war in West Asia persists, it could significantly impact steel production, posing a major operational challenge for one of India’s key steel manufacturers.
The current crisis is largely attributed to escalating tensions in West Asia that have strained global energy supplies.
Given the current scenario, the Central government has imposed restrictions on LPG distribution in the country. Priority is currently being given to domestic consumers, hospitals and hostels, leaving industrial users with minimised allocations. Although officials claim only a 20 percent cut in the commercial LPG supply, ground realities indicate a much steeper decline.
Employees reported that the VSP, which has a storage capacity of 325 tonnes of LPG, currently holds only about 75 tonnes. With a daily consumption of approximately 12 tonnes, the available reserves are alarmingly low. Compounding the issue, the plant is also experiencing reduced availability of by-product gases from coke ovens, further increasing its dependence on LPG. Workers warn that any further disruption in gas supply could halt critical processes of the plant, pushing it back into financial losses.
LPG plays a crucial role in the steel manufacturing process. After blending around 20 types of raw materials to produce hot metal, LPG is used in the Steel Melting Shop (SMS) to cut steel into required sizes at the continuous casting machines wing.
As on March 18th, Visakhapatnam Steel Plant had only 75 tonnes of LPG stock. However, following pressure from the management, two tankers with a capacity of 18 tonnes each have reported to arrive in the past couple of days, offering temporary relief.Despite having sufficient machinery and workforce at the moment, employees caution that worsening gas shortages could severely impact overall production capacities.
Union leaders have urged immediate intervention from the Ministry of Steel and Andhra Pradesh Chief Minister N Chandrababu Naidu to ensure uninterrupted LPG supply.
Vizag Steel Plant Employees Union general secretary J Ayodhya Ramu highlighted that workers had recently achieved profits exceeding Rs.30 crore in February through sustained efforts. He expressed concern that any disruption now could undo those gains.
Amid rising global uncertainty, there is cautious optimism among employees, as two additional LPG shipments are expected to arrive in Visakhapatnam soon. They hope that it would help stabilise the current situation. The next few days will be quite critical in assessing the fact whether timely intervention could avert production crisis at the steel plant or not.
