Visakhapatnam: The Vizag Steel Plant (VSP) is set to resume operations in Blast Furnace-1 (BF-1) from Monday, following a six-month shutdown due to raw material shortage and financial constraints. The plant aims to increase its production and regain its former glory with the support from the central and state govts.
The shutdown of BF-1 six months ago and BF-3 in January 2022 led to a significant decrease in steel production, resulting in financial difficulties for the 7.3 million tonne capacity plant over the past two to three years. The VSP struggled to pay employee salaries over the past few months. However, Union minister for steel, Kumaraswamy, assured that the central govt is developing plans to support the plant, while the state govt has requested assistance for the VSP, which holds sentimental value for the people of the state.
Currently, the VSP is operating only Blast Furnace-2 due to financial challenges, producing 7,500 metric tonnes of steel per day. With the resumption of BF-1, the plant expects to increase its daily production to 14,000 metric tonnes.
The steel plant has not paid full salaries to its employees for September, prompting ultimatums of agitation if the management fails to do so by Diwali. Additionally, the AP Eastern Power Distribution Corporation Limited (EPDCL) has served notice to the VSP management to pay pending arrears of around Rs. 124 crore, with a demand for Rs. 44 crore by the weekend.
