Vizag Steel Plant Achieves Record Hot Metal Output, Faces Challenges

The Rashtriya Ispat Nigam Limited (RINL), better known as Vizag Steel Plant (VSP), achieved a remarkable milestone on December 14, 2023, by producing a record **21,012 metric tonnes** of hot metal in a single day. This achievement marks the first time the plant exceeded its installed daily capacity, indicating a significant operational turnaround.

Palla Srinivasa Rao, the TD State president and Gajuwaka MLA, emphasized the importance of this accomplishment, stating that it dispelled any lingering doubts about the plant’s future. He called for a reassessment of VSP’s prospects based on factual evidence rather than speculation. In December, the plant has been averaging around **19,450 tonnes** of hot metal daily, achieving nearly **92 percent** of its capacity utilization.

The improved performance can be attributed to several factors, including enhanced availability of raw materials, disciplined furnace operations, and better management practices. Rao noted that the current NDA coalition government has provided robust support to revive the steel plant, recalling the role of the Telugu Desam Party in preventing its privatization in 1998. He assured that a similar commitment remains in place as of 2025.

Rao addressed allegations of “backdoor privatization,” labeling them as unfounded. He explained that recent contract rationalization efforts aim to alleviate financial stress on the plant. In total, over **₹14,000 crore** has been mobilized to stabilize VSP, consisting of **₹11,440 crore** from the central government and **₹2,600 crore** from the state, ensuring continuous supplies of raw materials, power, and water. He further clarified that the only by-product removed during production is slag, while attributing the plant’s previous financial difficulties to policies enacted by former administrations.

Adivasi Leaders Demand Employment Protections

In a separate development, Adivasi leaders in Visakhapatnam have intensified their calls for stronger constitutional protections and administrative recognition for tribal communities. They allege that the absence of a dedicated recruitment law has resulted in the loss of nearly **20,000 jobs** over the past five years.

During a meeting with Polavaram MLA Chirri Balaraju at Barinkalapadu village, leaders from the Adivasi Satyagraha Yatra urged the government to include the Polavaram region in the newly established Polavaram district and to name the district after Karam Tammanna Dora. Rama Rao Dora, a leader of the Adivasi Satyagraha Yatra and chairman of the Andhra Pradesh Adivasi JAC in Alluri district, called for the immediate enactment of a Scheduled Areas Employment Recruitment Act, aligning with the Fifth Schedule provisions under Article 244(1) of the Constitution.

Dora reminded officials of earlier commitments made by Chief Minister N. Chandrababu Naidu to provide job reservations for local Adivasis and to create a separate Adivasi district encompassing Polavaram submergence mandals. The Adivasi leaders also demanded the cancellation of non-tribal teacher appointments made through the Mega DSC, insisting that those positions should be filled solely by local tribal candidates.

They expressed concerns regarding the Supreme Court’s decision to strike down G.O. No. 3, arguing that it undermined constitutional protections for Adivasis. The leaders warned that failure to enact the promised recruitment law before the next DSC would represent another instance of historical injustice against tribal communities.

Instability at RINL as New Interim Chief Appointed

In another significant development, the Ministry of Steel has appointed Manish Raj Gupta as the interim chairman and managing director of RINL, effective from January 1, 2026. Gupta, who is currently the director of Technical, Projects & Raw Materials at the Steel Authority of India Limited (SAIL), will serve in this role for one year or until a permanent appointment is made.

The appointment comes as RINL has experienced ongoing leadership instability following the retirement of Atul Bhatt in November 2024. The Public Enterprises Selection Board had previously shortlisted S. Sakhtamani for the post in September 2024, but the appointment has faced delays due to pending approvals from the Appointments Committee of the Cabinet.

Over the last year, RINL has seen a succession of interim leaders, including A.K. Bagchi and Ajit Kumar Saxena, reflecting the ongoing challenges faced by the organization amid mounting financial pressures. RINL has defaulted on bank repayments, resulting in a downgrade of its credit rating to ‘C’. The organization has struggled to meet statutory obligations, including salary payments and retirement benefits, prompting concerns among employees regarding job security and financial stability.

While Gupta’s appointment is expected to provide temporary administrative continuity, the uncertainty surrounding long-term leadership remains a pressing issue for RINL as it navigates its recovery and future operations.