SEFI Delegation Meets Union Steel Minister, Seeks Urgent Steps to Revive Visakhapatnam Steel Plant – Indian PSU

A delegation of the Steel Executives Federation of India (SEFI) met Union Cabinet Minister for Steel H.D. Kumaraswamy at his camp office in New Delhi and submitted a memorandum highlighting the critical issues facing public sector steel companies, particularly Visakhapatnam Steel Plant (RINL).

The delegation was led by SEFI Chairman Narendra Kumar Banchor, General Secretary Sanjay Arya, Vice President Pandey, Deputy General Secretary Satish, and K.V.D. Prasad, General Secretary of the Officers Association of Visakhapatnam Steel Plant.

Banchor and K.V.D. Prasad said the Rs. 11,400 crore financial package sanctioned by the Centre for Visakhapatnam Steel has not been utilized effectively. They pointed out that no repairs have been undertaken in the critical Coke Oven Department and demanded immediate construction of a new Coke Oven Battery. They also sought priority cold repairs of the three existing batteries, which are more than 30 years old, and requested Rs. 2,500 crore in assistance for the purpose.

Demand for SAIL merger

Seeking a permanent solution to the plant’s raw material security concerns, the SEFI delegation demanded the merger of Visakhapatnam Steel Plant and Nagarnar NMDC Steel Plant with Steel Authority of India Limited (SAIL).

The delegation stated that RINL’s Visakhapatnam Steel Plant is bearing an additional cost of around Rs. 5,000-7,000 per tonne of iron ore compared with other steel plants. It therefore requested the Centre to provide a subsidy of Rs. 3,000 per tonne of iron ore consumed every month until the proposed merger takes place.

Employees’ issues raised

The delegation also raised a range of pending issues concerning serving employees, retired employees, VRS employees and pensioners. Their demands included:

• Immediate withdrawal of the circular linking wages with production.
• Payment of full wages to employees still awaiting the 2007 wage revision.
• Immediate promotions for executives, stalled for the last six years, along with retrospective seniority.
• Payment of wage arrears and restoration of stopped allowances.
• Immediate settlement of dues of retired and Voluntary Retirement Scheme (VRS) employees.
• Resolution of the Higher Pension issue affecting thousands of employees and intervention with the Union Ministry of Labour.
• Full pension to families of deceased employees under the Employee Family Benefit Scheme and immediate clearance of pension arrears.
• Appointment of a full-fledged Board for Visakhapatnam Steel and delegation of adequate decision-making powers to the local management.

Concerns over decisions affecting RINL

The delegation also told the Minister that several decisions taken by the Ministry of Steel and Ministry of Finance after the announcement of the financial package had adversely affected the plant.

According to the delegation, a large number of workers and employees were removed under VRS, full-scale production was undertaken during the off-season, coke and pellets were purchased from outside at high prices, and critical departments were not adequately maintained.

The representatives said these factors contributed to a situation where liquid steel produced at the plant could not be converted into finished products, resulting in inventory accumulation of more than Rs. 5,000 crore.

The delegation further highlighted the resignation of hundreds of young employees who, it said, were unable to cope with the prevailing difficulties. Around 400 employees have reportedly resigned even after the Centre announced the financial package. The delegation said the loss of experienced young talent was a setback not only for RINL but also for the nation.

RINL employees record high productivity

Despite the challenges, the delegation pointed out that Visakhapatnam Steel employees achieved the highest per capita productivity among steel plants in the country during the last financial year, recording 880 tonnes per man.

The delegation said the productivity figure demonstrated the efficiency and commitment of the workforce despite the operational and financial difficulties faced by the plant.

The Steel Minister assured the delegation that he would examine the issues raised and take positive decisions.

Subsequently, full salaries were paid to RINL employees on the same day evening.

SEA General Secretary K.V.D. Prasad and President Vidyut Kumar Varma conveyed their gratitude to the Minister of State and RINL CMD M.N.V.S. Prabhakar. They requested that the remaining pending issues concerning serving employees, retired employees, VRS employees and pensioners be resolved at the earliest.