Sat Feb 01 07:10:00 UTC 2025: ## Visakhapatnam Steel Plant Privatization Halted, Govt. Announces Revival Package

**Visakhapatnam, January 30, 2025** – The Indian government has announced it will not privatize the Rashtriya Ispat Nigam Limited-Visakhapatnam Steel Plant (RINL-VSP) and will instead invest in its revitalization. Union Minister for Steel and Heavy Industries, H.D. Kumaraswamy, made the announcement after a day-long visit to the plant.

Kumaraswamy stated that the plant, which had faced financial difficulties following an expansion, will receive a ₹11,440 crore revival package. He cited December 2024 production figures of 14,000 metric tonnes (with only two of three blast furnaces operational) as a positive indicator. The third blast furnace is expected to restart in June or July 2025, boosting production to 21,000 metric tonnes and eventually reaching its full capacity of 7.3 million metric tonnes per day.

The decision marks a reversal from the government’s 2021 announcement to divest the plant, which at the time carried ₹18,000 crore in liabilities, now increased to ₹35,000 crore. Kumaraswamy credited Prime Minister Narendra Modi’s positive response to the plant’s improved performance and persistent lobbying by local officials, including Andhra Pradesh Chief Minister Nara Chandrababu Naidu and Visakhapatnam MP M. Sribharat, for the decision.

The minister further confirmed that the government will address concerns raised by trade unions, including issues related to capital iron ore mining and tax holidays, to ensure the plant’s long-term viability and prevent job losses. The government aims to make RINL-VSP the top steel PSU in the country, second only to Steel Authority of India Limited.

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