What's Happening?
The Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), has issued nearly 20 tenders for various works, including operations and maintenance of the Steel Melting Shop-1. This move has raised concerns among
both regular and contract employees about potential privatization, despite assurances from elected officials like Chief Minister N. Chandrababu Naidu that privatization will not occur. The latest tender, valued at ₹132 crore, involves comprehensive technical operation and maintenance of six continuous casting machines, aiming to produce 3.6 million tonnes of liquid steel annually. The plant has reported losses of ₹284 crore in November 2025, further fueling fears of privatization. A dharna is planned at the plant's administrative building to protest these developments.
Why It's Important?
The issuance of new tenders by RINL has significant implications for the workforce at the Visakhapatnam Steel Plant. With the plant showing substantial losses, employees are concerned about job security and the potential shift towards privatization. The plant employs approximately 9,400 regular employees, with no new recruitment in six years, and about 3,000 employees are expected to retire by 2027. The workforce fears that privatization could lead to job cuts and changes in employment terms. The situation highlights the broader challenges faced by public sector enterprises in India, where financial losses and operational changes can lead to workforce unrest and calls for public movements to protect jobs.
What's Next?
A dharna is scheduled at the steel plant's administrative building to protest the tender issuance and highlight workforce concerns. The Visakha Ukku Parirakshana Porata Committee, led by J. Ayodhya Ramu, plans to mobilize public support to prevent privatization and protect employee interests. The committee aims to increase pressure on the government to ensure job security and transparency in the plant's operations. The outcome of these protests and the government's response will be crucial in determining the future of the plant and its workforce.
