Uncertain fate for 1L families as solution not in sight to RINL’s woes

Visakhapatnam: An uncertain future is haunting an estimated one lakh families who depend on their livelihood directly and indirectly on Visakhapatnam Steel Plant, the largest industry set up after an agitation spearheaded by ‘Visakha Ukku Andhrula Hakku’ in undivided Andhra Pradesh in 1970s. The agitation had claimed 32 lives in multiple police firing incidents.

VSP has production capacity of 7.3 million tonnes per annum under the brand name Vizag Steel. It is leading a hand-to-mouth existence due to increasing debt liabilities crossing a whopping Rs 20,000 crore, worsening working capital crunch and heavy production cost for want of captive iron ore and coal mines.

Rashtriya Ispat Nigam Limited (RINL) is the corporate entity of VSP, India’s first shore based integrated steel plant. Following Government of India’s decision in January, 2021 to privatise it by lock, stock and barrel the employee are on an indefinite relay strike against it.

RINL has 14,000 permanent workforce and an estimated 15,000 contract workers. Vendors, suppliers, ancillary industries and other stakeholders are dependent on the future of RINL.

Out of three blast furnaces, only one is operated with throttled production due to coking coal supply disruption for over a month since workers of Adani Gangavaram Port Ltd (AGPL) went on an indefinite strike on April 12 demanding ‘decent’ hike in wages.

As a result, RINL has diverted ships stuck with imported coking coal at the Adani Gangavaram to Visakhapatnam Port Authority (VPA). Now VPA and the trade unions are demanding to have agreement with VPA for priority berthing with a commitment to share its cargo handling requirements with VPA and AGPL.

“During the recent visit of Union Steel Secretary NN Sinha we insisted on allotting captive mines, granting working capital, signing an agreement with SAIL on supply of coking coal regularly for a quick turnaround,” AITUC national vice-president D Adinarayana told Bizz Buzz.

In addition to heavy production loss due to coking coal crisis, overhead cost and debt servicing liabilities, RINL is incurring a total loss of Rs 2600 crore a month, he stated. “The employee and all others are leaving constantly with fear about an uncertain future as the staff are not given monthly salaries in one go and their promotions and revision of wages are due for a long time,” Neerukonda Ramachandra Rao, president, Visakha Steel Employees’ Congress, said.

After the elections, the unions who are fighting unitedly, feel that good sense should prevail upon the new government to put RINL on the right track.