Mangaluru

Decision on VISP revival will be taken after survey

Choudhary Birender Singh, Union Minister for Steel, at a press conference in Bhadravati, near Shivamogga on Friday. B. S. Yeddyurappa, MP, is seen. VAIDYA

Choudhary Birender Singh, Union Minister for Steel, at a press conference in Bhadravati, near Shivamogga on Friday. B. S. Yeddyurappa, MP, is seen. VAIDYA  

Union Minister holds talks with management, workers

Choudhary Birender Singh, Union Minister for Steel, has said that a decision will be taken on revival of Visvesvaraya Iron and Steel Plant (VISP), a public sector unit in Bhadravati managed by Steel Authority of India Ltd. (SAIL), after conducting a detailed technical and feasibility survey in this regard.

Mr. Singh visited VISP on Friday and held talks with representatives of management and VISP Workers’ Union on its revival.

Speaking to presspersons later, he said that VISP was incurring loss for the past 10 years. According to official estimate, the loss was around Rs. 100 crore per year during this period. During the discussion, it had emerged that the outdated production methods was the main reason for the loss incurred by the firm and that it can be brought back on the path of profit by modernising it.

Referring to the survey conducted by MECON Ltd., a public sector consultancy firm in 2008 on revival of VISP, he said that according to the study conducted then, around Rs. 3,200 crore was needed for complete modernisation of the firm. The MECON will be entrusted with the responsibility of conducting a fresh survey on measures to be taken for revival.

The survey will be completed in two months. Based on the survey, the SAIL will be asked to prepare a complete road map on the revival of firm after which Ministry of Steel will take a decision on investing funds for the modernisation, he said.

Regarding the legal hurdles that have come in the way of allotment of captive mine for VISP in Ballari district, Mr. Singh said that he would direct the officials of Ministry of Law to take measures to ensure that the legal hurdles are cleared at the earliest. It may be mentioned here that, as production is not being done on a full-fledged manner in VISP owing to decline in the demand for steel, the contract workers serving here were fearing job loss. Mr. Singh said that, no contract worker will be removed from the job and that their employment contract with VISP will be renewed.

On the demand for renovation of blast furnace unit at VISP that may cost around Rs. 250 crore, he said that during the discussion, there was demand to either renovate the blast furnace unit or to commission an electric arc furnace as replacement for blast furnace. A decision will be taken in this regard after studying the pros and cons, he said.

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Printable version | Apr 4, 2020 12:23:43 PM | https://www.thehindu.com/news/cities/Mangalore/decision-on-visp-revival-will-be-taken-after-survey/article23277937.ece

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