The second steel plant in the city mooted by the Government of India has raised many an eyebrow as Visakhapatnam Steel Plant-the integrated first shore-based steel plant was established after the ‘Visakha Ukku Andhrula Hakku’ agitation. Union Steel Minister Chaudhary Birender Singh at the task force meeting held in New Delhi recently to review the promises made in the AP Reorganisation Act, 2014, announced that Greenfield steel plants would be set up at Kadapa making use of raw material available in Rayalaseema and a cold rolled coil steel plant in Visakhapatnam.
He hinted at an investment of ₹6,000 crore. The steel plant will come up under the supervision of Steel Authority of India Ltd (SAIL), sources said. Cold rolled coil steel is used for almirahs and other usage. Employees of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of VSP, contend that the steel plant, the first in undivided Andhra Pradesh established after a lot of struggle is now in distress due to cash crunch, volatility of market and dumping of cheap steel by China.
“Instead of investing in a new plant, let the government help RINL make use of it premises by developing a steel sheet mill to roll out cold rolled coils,” CITU leader J. Ayodhyaram said.
Santosh Patnaik
