Port workers’ protest hits VSP production

All coke oven batteries are not being run due to shortage of coal. We appeal to the government to direct Gangavaram Port to facilitate unloading of coal from 2 ships, which came from Australia, without dilly-dallying - D Adinarayana, General Secretary, Visakha Steel Workers’ Union (VSWU), tells Bizz Buzz

Visakhapatnam: The abstaining of work by the workers of Adani Gangavaram Port Ltd has hit production at Rashtriya Ispat Nigam Ltd’s (RINL) Visakhapatnam Steel Plant (VSP) as two ships laden with imported coal were held up for discharge.

The workers are on protest mode for the past four days demanding fulfillment of promises like removal of disparities in employment conditions and increase in wages with social security measures. Meanwhile, the RINL management and the trade unions sent SOS to the State Government to allow a group of RINL workers and a section of port workforce to discharge cargo from the ships stranded at the port.

“We are trying our level best to tide over the crisis,” a RINL official told Bizz Buzz on Tuesday, when asked about the latest situation.

VSP, which has production capacity 7.3 million tonnes (MT) per annum, has been curtailing its production due to abnormal rise in raw material prices and problems in getting iron ore and coking coal, the main source of steel-making. Unlike other major manufacturers, RINL is deprived of captive mines. It needs most of the iron ore requirement through a long-term agreement with NMDC from its Bailadilla mines in Chhattisgarh. It procures coal from Mahanadi Coalfields Ltd (MCL) from its mines in Odisha.

RINL, after shutting down blast furnace-3 for a long time due to raw material problems, entered into an MoU with Jindal Steel & Power Ltd (JSPL) during last year-end to restart it. RINL also signed an agreement with Tata International to obtain raw materials through Letter of Credit (LoC) basis.

The problems notwithstanding, the company registered a sales turnover of Rs23,129 crore during FY2023-24 accounting for a growth of two per cent over corresponding period last year.

With buffer stock fast getting exhausted, RINL is procuring two rakes of coal from Steel Authority of India Ltd (SAIL). RINL sources said the rakes are on the way to Visakhapatnam and they are also expecting supply of stocks from SAIL’s outstand units and stockyard in Visakhapatnam as a precautionary measure.

The sources said the two ships, which are held up at Gangavaram Port, located in the backyard of VSP, are carrying 2.2 lakh tonne. After meeting with the unions and the management, after the employees went on strike, District Collector A Mallikarjuna advised port officials to resolve the impasse at the earliest.

“Against daily production of 20,000 to 22,000 tonnes, we are able to produce only 13,000 tonne to 18,000 tonne per day due to the raw material crisis. MCL and NMDC are also insisting on regular payments for dispatch of coal from Odisha. All coke oven batteries are not being run due to shortage of coal. We appeal to the government to direct Gangavaram Port to facilitate unloading of coal from two ships, which came from Australia, without dilly-dallying,” said D Adinarayana, General Secretary, Visakha Steel Workers’ Union (VSWU).