Mon Feb 03 14:21:05 UTC 2025: ## Visakhapatnam Steel Plant Achieves Record Production Despite Salary Crisis

**Visakhapatnam, February 3, 2025** – The Rashtriya Ispat Nigam Limited-Visakhapatnam Steel Plant (RINL-VSP) has reported record hot metal production despite facing a severe financial crisis, including months of delayed and partial salary payments to its employees. The plant produced 31 lakh metric tonnes of hot metal between April 2024 and January 2025, a significant achievement considering operational challenges.

While this surpasses previous monthly production records, it falls short of the 57 lakh tonnes achieved in the 2021-2022 financial year. Despite the record production, RINL-VSP has been unable to pay its employees full salaries for several months, with many receiving only 30-50% of their due wages. The Visakha Ukku Parirakshana Porata Committee reports that over 300% of total salaries are currently outstanding.

The plant’s revenue from steel sales reached ₹14,500 crore over ten months, averaging over ₹1,450 crore per month. However, this revenue hasn’t translated into timely salary payments, sparking concern amongst employees. The plant’s leadership has attributed the success to the dedication of its workers despite these difficulties.

Further complicating matters, around 2,500 employees are expected to leave the plant by the end of the financial year, including 1,600 who applied for a voluntary retirement scheme and an estimated 1,200 retirements. This, along with the departure of over 700 young engineers due to stagnant promotions, threatens to significantly impact future operations. Union representatives are urging immediate recruitment and promotions to address the critical manpower shortage and maintain operational efficiency.

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