*A Defining Turn in Visakhapatnam Steel Plant’s Revival Journey* *Chandrababu Naidu’s Reforms Bring Relief to the Steel Sector; ₹2,400-Crore Dues Converted into Equity* *Future already secured with ₹14,000-Crore Revival Package:* *-Palla Srinivasa Rao*

.                   by Sharma K.V.  Editor
Visakhapatnam, October 16:*In a move being hailed as a watershed moment for the Visakhapatnam Steel Plant (VSP), the Andhra Pradesh Government’s decision to convert pending power dues amounting to ₹2,400 crore into equity has been described as a “historic measure of relief” by State Telugu Desam Party (TDP) President and Gajuwaka MLA, Mr. Palla Srinivasa Rao.

Welcoming the decision, Mr. Palla said it underscored the foresight of Chief Minister N. Chandrababu Naidu and reflected the coalition government’s commitment to industrial rejuvenation. “This initiative not only provides financial stability to the plant but also marks a decisive step in the resurgence of Andhra Pradesh’s steel industry,” he observed.

He noted that both the Central and State governments were working in close coordination to restore the plant’s vitality. Of the ₹11,500-crore package previously announced, ₹9,500 crore has already been released, while the conversion of power dues into share capital now further consolidates the plant’s financial foundation. “This is far more than a fiscal reform—it is an assurance to thousands of families whose lives depend on the plant,” he said.

*“People Must See Through the Campaign of Misinformation”*

Taking exception to what he termed “a deliberate campaign of misinformation” by certain unions—particularly the CITU—and sections linked to the Y.S. Jagan Mohan Reddy camp, Mr. Palla said the claim that the plant could not operate without captive mines was “a complete fabrication.”

“Mines with iron content below 40 per cent are commercially unviable. For the plant to reach breakeven, production must touch 60 per cent of capacity—about 15,000 metric tonnes per day. With the third blast furnace now operational, production levels are steadily improving,” he explained.

He pointed out that ₹9,500 crore out of the ₹11,500-crore revival fund has already been credited to the Rashtriya Ispat Nigam Limited (RINL) account, and that workers, with renewed determination, were striving to restore the plant’s lost glory. “Ironically, those who once siphoned off crores by showing fictitious names as workers are now spreading doubts among genuine employees,” he remarked.

*Sharp Critique of the Previous Regime*

Mr. Palla launched a scathing attack on the previous administration, asserting that under Y.S. Jagan Mohan Reddy’s rule, the State witnessed “neither employment nor investment, nor industrial growth.” He accused the former government of pushing the steel plant into debts amounting to ₹38,500 crore, including unpaid salaries and maintenance costs.

“He plunged Andhra Pradesh into a debt trap, crippled the logistics sector, drove industries to the brink, and snatched away opportunities from the youth,” he said.

“The coalition government’s mission is unambiguous—employment for every youth, security for every family. By 2047, Andhra Pradesh will emerge as Swarna Andhra—a model State in logistics, a hub of industrial investment, and a land of opportunity for the young,” Mr. Palla asserted.

*“Displaced Workers Must Be Retained; Government Stands by Their Livelihood”*

Calling for fairness towards those displaced by the plant’s establishment, the TDP State President emphasised that at least half of all employment opportunities should continue to be extended to steel plant oustees working as contract labour. He urged that, under the single-window contracting system now being rolled out, all contractors must retain existing workers—particularly those with long service records.

He clarified that the government was not opposed to the single-window model being adopted as part of the plant’s restructuring. “In the past, certain contractors, officials, and union leaders colluded to siphon off wages of nearly 2,000 non-existent workers. Such irregularities came to light only after the introduction of biometric attendance,” he said, adding that the coalition government had moved promptly to strike out these bogus entries.

“The government is firmly committed to supporting the plant’s revival. Until displaced workers achieve complete livelihood security, they must continue to be engaged under the contractual system,” he emphasised.

Recalling that it was the Telugu Desam Party which had prevented the steel plant’s privatisation in 1998, Mr. Palla reaffirmed, “The same resolve guides us even today. In 2025 too, the TDP will ensure that VSP remains a public sector enterprise.”

He noted that the number of contractors at the plant had been rationalised from nearly 1,000 to 42—one for each division—thereby reducing the financial burden. “To misrepresent this streamlining as privatisation is nothing but willful propaganda,” he said, urging contractors to honour their responsibility of continuing local displaced workers and senior contract employees under the new system.

*Steel, IT, and Logistics – The Three Pillars of a Golden Andhra*

Envisioning Andhra Pradesh’s industrial future, Mr. Palla said, “Visakhapatnam is transforming into an IT hub, Anantapur into an aerospace hub, Kurnool into a drone hub, and Amaravati into the pride of India—a model capital symbolising the State’s resurgence.”

“With industries, logistics, and employment as its three pillars, Andhra Pradesh is moving with renewed vigour towards a golden era under the visionary leadership of Chief Minister Chandrababu Naidu,” he affirmed with conviction.