Workforce reduction and underutilised blast furnaces hinder Visakhapatnam Steel Plant’s path to revival
PNS|Visakhapatnam
Even as the Centre’s Rs 11,440-crore revival package for Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant brings a glimmer of hope, the management of the Visakhapatnam Steel Plant finds itself grappling with serious operational hurdles—chief among them, a shrinking workforce.
Tasked with scaling production to the plant’s rated capacity of 7.3 million tonnes per annum, RINL is facing a formidable challenge. Industry experts say that despite the much-needed financial infusion, the path to revival hinges on effective utilisation of manpower and optimal operation of production units.
A key feature of the revival plan is the proposed reduction of RINL’s massive debt burden, which had ballooned to Rs 35,000 crore. While the package allocates Rs 5,000 crore towards debt servicing, trade union leaders caution that any potential relief in interest liability will be short-lived unless the plant resumes operations across all three of its blast furnaces.
“At present, only two of the three blast furnaces are functional, producing around 14,000 tonnes of hot metal daily. Full capacity can be reached only when the third furnace is brought back into operation,” said D. Adinarayana, national vice-president of the All-India Trade Union Congress (AITUC), speaking to The Pioneer.
The steel plant, which produced 5.1 million tonnes three years ago with a workforce of 14,500, now operates with roughly 13,000 employees—largely due to a wave of retirements and voluntary exit schemes. This decline, according to labour representatives, is severely hampering efforts to meet production targets. Adding to the strain is the uncertain status of the contract workforce. Of the estimated 14,000 contract workers, around 600 have reportedly not been issued gate passes, while approximately 1,600 employees aged above 40 have been directed to undergo mandatory medical evaluations, raising concerns over possible disengagement.
