Thu Apr 02 15:35:04 UTC 2026: # Visakhapatnam Steel Plant Employees Face Welfare Crisis: MP Urges Government Intervention

The Story:
Visakhapatnam MP M. Sribharat met with Union Minister of Steel H.D. Kumaraswamy on Thursday, April 2, 2026, in New Delhi to address the growing welfare issues faced by employees and retired personnel of the Visakhapatnam Steel Plant (VSP). The MP presented a detailed representation highlighting the financial strain on retirees due to a proposed hike in health insurance premiums and the long-standing issues of pending wage revisions, stalled promotions, and unpaid dues for both current and former employees. He emphasized the urgent need for government intervention to alleviate the financial burden and improve the overall working conditions at VSP.

Key Points:

  • Proposed Health Insurance Hike: A significant increase in health insurance premiums for retired employees, from ₹2,600 to ₹17,000, is causing considerable financial distress. This affects approximately 10,000 retired employees and 20,000 beneficiaries.
  • Low Pensions: Many retirees receive pensions as low as ₹2,000 per month, rendering the proposed premium hike unaffordable.
  • Lack of Medical Facilities: Unlike Steel Authority of India Limited (SAIL) units, VSP lacks dedicated medical facilities for its employees. The MP suggested considering a merger with SAIL to adopt similar supportive policies.
  • Wage and Promotion Issues: There have been no wage revisions for officers since 2007 and for workers since 2017. Promotions have been stalled for over six years, and salaries have been pending for nearly four months.
  • Pending Dues: Approximately ₹600 crore in dues is yet to be cleared for retirees, widows, and current employees.
  • High Productivity: Despite these issues, RINL employees have demonstrated high productivity, exceeding 1,000 tonnes per employee annually.
  • Financial Capacity: The MP argued that an annual health insurance expenditure of around ₹50 crore should not be a financial burden for an organization with a turnover exceeding ₹20,000 crore, especially considering the recently announced ₹10,000 crore support package from the Centre.

Key Takeaways:

  • The Visakhapatnam Steel Plant is facing a significant employee welfare crisis, impacting both current and retired personnel.
  • The proposed health insurance premium hike is a major source of concern, particularly for retirees with low pensions.
  • The lack of wage revisions, stalled promotions, and pending dues are contributing to employee dissatisfaction and financial instability.
  • The MP’s intervention highlights the urgent need for government action to address these issues and ensure the well-being of VSP employees.
  • The potential merger with SAIL is presented as a solution to improve medical facilities and employee benefits.

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