Wed Jan 29 16:07:05 UTC 2025: ## Visakhapatnam Steel Plant Struggles with ₹35,000 Crore Debt Despite Government Bailout
**Visakhapatnam, Andhra Pradesh, January 29, 2025** – The Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), is grappling with a massive ₹35,000 crore debt, including defaulted loans and interest payments. This was revealed by Sandeep Poundrik, Secretary, Ministry of Steel, during a visit to the plant on Wednesday.
Mr. Poundrik met with employees, focusing on those under 40, to address the ongoing crisis. He highlighted the government’s ₹11,440 crore revival package, stating that ₹1,640 crore has already been disbursed to banks. The remaining funds are earmarked for debt repayment, but the plant must cover daily operations and fixed costs from its own revenue.
The meeting addressed contributing factors to the crisis, including a lack of captive mines, insufficient operational spares, and the need for capacity expansion. Outstanding employee salaries were also discussed. The Ministry projects that the third blast furnace will reach full capacity by July 2025, a key step towards financial recovery. Mr. Poundrik expressed optimism that increased production and cost reduction will help the plant overcome its financial difficulties.
However, the Visakha Ukku Parirakshana Porata Committee expressed dissatisfaction with the meeting’s outcome and plans to raise concerns directly with Steel Minister H.D. Kumaraswamy during his scheduled visit on January 30.
First Piper 