Jagan reaffirms support to Vizag Steel Plant workers, vows to oppose privatization

Former Chief Minister and YSR Congress Party (YSRCP) president, Y.S. Jagan Mohan Reddy, has reiterated his steadfast commitment to the Visakhapatnam Steel Plant (VSP), assuring workers and the public that protecting the plant remains a core political and economic priority.

During his road visit to Visakhapatnam as part of a tour to Narsipatnam, Mr. Jagan met with VSP workers, who presented him with a memorandum highlighting their grievances and concerns about the plant’s future. Workers accused the previous TDP-led alliance of betraying its pre-election promises to safeguard the plant and requested continued support to prevent privatization.

Responding positively, Mr. Jagan made it clear that whether in power or opposition, the YSR Congress Party’s stand on VSP remains unchanged. “Our position has always been consistent to protect the steel plant and stand by its workers,” he said. He emphasized that VSP must remain a public sector entity and that privatization would be detrimental to both employment and regional economic stability.

Workers’ demands

The workers outlined three main demands to the government:

• Reversal of the Union Cabinet’s decision to privatize VSP.

• Allocation of captive iron ore mines to the plant to ensure self-sufficiency and reduce operational costs.

• Consideration of merging VSP with SAIL (Steel Authority of India Limited) and reinstating employees who were previously retrenched.

These demands have fueled sustained protests by workers, unions, and political parties over the past several years.

Historical context: Privatization controversy

In February 2021, the Union Cabinet approved 100% strategic disinvestment of Rashtriya Ispat Nigam Limited (RINL) the corporate entity operating VSP including all its subsidiaries and joint ventures. The decision was based on internal reports and financial assessments prepared by the Ministry of Steel, DIPAM, and expert committees, which highlighted RINL’s financial stress, operational inefficiencies, and lack of captive iron ore mines.

Prior to approval, the Prime Minister’s Office reviewed Cabinet notes and valuation reports while also considering representations from the Andhra Pradesh government, workers, and unions. Although these inputs were advisory, they were included in Cabinet deliberations to assess the socio-political and operational risks associated with privatization.

Political dynamics and challenges

While the Andhra Pradesh government cannot legally block the privatization — as it is a Union subject under the Constitution — it can exert political pressure through lobbying, legislative resolutions, and public mobilization. Former Chief Minister Jagan had written multiple letters to the Prime Minister and passed Assembly resolutions opposing the move. He also supported worker protests and proposed alternative solutions, such as captive mine allocation and merging VSP with SAIL.

The current state government (NDA coalition) has shown limited interest in advancing steel projects like the Kadapa Steel Plant, citing financial constraints, project delays, and high risk, while political and economic attention has remained focused on VSP.

Operational and financial status of VSP

• Debt Burden: VSP carries an estimated ₹20,000–₹25,000 crore debt, largely from term loans and working capital borrowings. This high debt is a key factor complicating privatization and limiting investor interest.

• Capacity and Importance: VSP is the largest integrated steel plant in Andhra Pradesh, producing ~7.3 million tonnes per annum. It provides over 13,000 direct and 50,000 indirect jobs, making it economically and socially critical.

• Kadapa Steel Plant (KSP): By contrast, the Kadapa Steel Plant remains a proposed greenfield project with limited progress, facing delays in land acquisition, environmental approvals, and investment. It does not generate the same scale of employment or political significance as VSP.

Centre’s position and buyer search

The Union Government retains full legal authority to proceed with privatization and has reportedly been internally exploring potential buyers, though no official Expression of Interest or public bid has been issued. Investor hesitation stems from VSP’s high debt, operational challenges, and political sensitivity, making strategic sale negotiations complex.

Political analysts note that the high “political cost” the risk of public backlash, worker strikes, and opposition-led campaigns has contributed to the slowing of the privatization process. While the Centre can legally revoke or resume the sale at any time, practical considerations and ongoing opposition have delayed final action.

Jagan’s stand moving forward

YS Jagan Mohan Reddy assured the workers that YSRCP will continue to support VSP employees, protect jobs, and oppose privatization, whether in power or in opposition. He emphasized that the party’s objective is not only to safeguard employment but also to ensure that VSP remains a public asset benefiting the people of Andhra Pradesh.

“Visakhapatnam Steel Plant is the pride of our state, and our fight to protect it will never waver,” he said.

The fate of VSP remains a sensitive intersection of politics, economics, and public sentiment. While the Union Government has the authority to privatize the plant, financial challenges, political resistance, and social considerations have slowed the process. YS Jagan Mohan Reddy’s assurances signal continued political advocacy for VSP workers and public ownership, ensuring the debate around the plant remains a central issue in Andhra Pradesh’s industrial and political landscape.

YS Jagan supports fishermen’s protest against bulk drugs park

During his visit to Narsipatnam, former CM and YSR Congress Party leader Y.S. Jagan Mohan Reddy met with local fishermen demanding the cancellation of a proposed bulk drugs park. The fishermen urged him to pressure the previous coalition government to halt the project. Expressing solidarity, Mr. Jagan held a placard reading “No Bulk Drugs Park… People’s Lives Matter”, assuring the community of his support.