Mon Dec 01 15:54:18 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:

Summary:

CITU State general secretary Ch. Narasinga Rao has accused Visakhapatnam Steel Plant (VSP) management of using inferior quality coke, leading to poor quality steel, rejected orders, and financial losses. He alleges that the plant isn’t maintaining adequate raw material stocks, causing production disruptions. While VSP was profitable earlier in 2025 due to high production from two blast furnaces, the addition of a third furnace and the use of inferior coke have led to significant losses and jeopardized the plant’s reputation for quality steel. Rao calls for a CBI investigation into the matter. He highlights the alarming increase in raw material costs compared to other steel plants.

News Article:

Vizag Steel Plant Accused of Using Inferior Coke, Facing Losses

VISAKHAPATNAM, India – December 1, 2025 – The Visakhapatnam Steel Plant (VSP) is facing accusations of unethical practices and financial mismanagement, according to Ch. Narasinga Rao, State General Secretary of the Centre of Indian Trade Unions (CITU). Addressing a media conference on Monday, Rao alleged that VSP management is using inferior quality coke in its coke oven department, resulting in poor quality steel that is being rejected by buyers.

“The inferior coke being imported directly from abroad is being sold for commissions. This is damaging the reputation of Vizag Steel, which has been known for its quality for years,” Rao stated. He also noted that CITU had previously filed a complaint with the CBI regarding the use of substandard coke.

The situation is compounded by a shortage of raw materials, with the plant’s Steel Melting Shop (SMS) experiencing production halts due to a lack of limestone. Rao claims that VSP’s raw material stock is critically low, lasting only three days, far short of the intended 45-day supply.

While VSP reported profits in April and May of 2025, reaching full production capacity (15,000 tonnes per day) with two blast furnaces, the commissioning of a third blast furnace in June has triggered a sharp financial downturn. The plant suffered losses of ₹121 crore in July and ₹157 crore in August. “We need to know who is responsible for these losses,” Rao demanded, urging the CBI to launch an investigation.

Rao emphasized that the use of inferior coke has caused production at the blast furnaces to plummet to 67%. Raw material costs, which accounted for 63% of the total production cost in 2024, have skyrocketed to 75% in 2025, a figure significantly higher than other steel plants worldwide, including SAIL, where raw material costs account for 50% of total production cost.
The Hindu

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