Fresh concerns have surfaced over the future of the Visakhapatnam Steel Plant (VSP), as its management has issued fresh tenders to hand over several critical departments to private operators. This comes as a surprise because, after the Centre announced a financial package of ₹11,000 crore earlier this year, many workers and union leaders believed that privatization plans had been shelved.
However, the latest notifications from Rashtriya Ispat Nigam Limited (RINL), the corporate entity of VSP, have reignited fears. Workers say that instead of reviving the plant’s glory, the management is slowly outsourcing one department after another.
In its latest move, RINL has invited private participation in the operation and maintenance of 34 key units. These include the captive power plants, waste heat recovery thermal power plants, wire rod mills, and even the three major blast furnaces, the heart of the steel plant. Departments like Steel Melt Shops (SMS I, II, III), Structural Mills, Madaram Mines, Roll and Repair Shops, and even the Fire Department have also been marked for outsourcing.
Unions argue that such steps amount to “privatisation through the backdoor.” Workers who were reassured by coalition leaders and central ministers that the plant would remain under public ownership are now staging protests. They fear that once critical operations move into private hands, complete privatisation will only be a matter of time.
With over 850 employees in the listed departments and many more indirectly affected, anger among workers is growing. For them, the Centre’s earlier promises of revival now appear hollow. The management’s contradictory approach, talking about protecting the plant on one side while pushing for outsourcing on the other, has left employees confused and worried.
The Visakhapatnam Steel Plant, once considered a symbol of Andhra Pradesh’s industrial pride, now finds itself at the crossroads. The coming months will decide whether it revives as a public-sector giant or slips further into private control.
